Reasons NPV,IRR,MIRR,and PI will sometimes disagree in the case of mutually exclusive investments include all of the following except:

Question

Quizplus · Accepted Answer

The location of an investment is not a factor that affects the calculations of NPV, IRR, MIRR, and PI. The three factors that can cause these methods to disagree are differences in cash flow patterns, time horizons, and sizes. Mutually exclusive investments are investments that compete with each other, and choosing one investment means rejecting the other. Therefore, it's important to use the appropriate capital budgeting technique that can provide accurate results based on the investment's characteristics to make the best investment decision.

Reasons NPV,IRR,MIRR,and PI Will Sometimes Disagree in the Case of Mutually