When risk analysis deals with costs and benefits that vary by year, the computations should use ________.
A) NPV
B) IRR
C) Either A or B
D) Neither A nor B

Question

Quizplus · Accepted Answer

Both NPV (Net Present Value) and IRR (Internal Rate of Return) are methods that can handle the analysis of costs and benefits varying by year, as they both take into account the time value of money.

When Risk Analysis Deals with Costs and Benefits That Vary