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If the Net Present Value (NPV) Method and the Internal

Question 9

Multiple Choice

If the net present value (NPV) method and the internal rate of return (IRR) method are both applied to the comparison of two mutually exclusive projects,


A) both can be expected to yield the same conclusion.
B) if they yield conflicting conclusions, then the conclusion implied by the NPV method should be followed.
C) if they yield conflicting conclusions, then the conclusion implied by the IRR method should be followed.
D) if they yield conflicting conclusions, then a third method should be used to resolve the conflict.

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