Net present value (NPV)is usually supplemented by internal rate of return (IRR), since IRR gives a good indication of the sensitivity of any decision made to changes in the discount rate.

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This statement is true. IRR helps to determine how sensitive a project's estimated cash flows are to variations in the discount rate, which can impact the Net Present Value (NPV) of the project. Therefore, both NPV and IRR are often used together in investment analysis.

Net Present Value (NPV)is Usually Supplemented by Internal Rate of Return