In comparing the internal rate of return and net present value methods of evaluation,
A) Internal Rate of Return is theoretically superior, but financial managers prefer Net Present Value.
B) Financial managers prefer net present value, because it measures benefits relative to the costs.
C) Financial mangers prefer net present value, because it is presented as a rate of return.
D) Net Present Value is not theoretically superior, but financial mangers prefer to use it anyway.

Question

Quizplus · Accepted Answer

NPV measures benefits relative to the costs of a project.

In Comparing the Internal Rate of Return and Net Present