Which statement best reflects the difference between NPV and IRR?
A) Both NPV and IRR will generate the same decisions.
B) NPV considers the time value of money, and IRR does not.
C) NPV is used on one project only and IRR is used when choosing among competing, mutually exclusive projects.
D) NPV measures profitability in absolute terms, whereas the IRR method measures profitability in relative terms.
Correct Answer:
Verified
Q87: Which model is preferred for choosing the
Q88: Present Value Tables
Present value of $1
Q89: Present Value Tables
Present value of $1
Q90: What provides an absolute dollar measure?
A) the
Q91: What capital investment decision-making model assumes that
Q93: A division manager is considering a project
Q94: Canadian Division
The Canadian Division manager is
Q95: Columbus Company
Columbus Company has four mutually
Q96: Suppose the net present value is negative.
Q97: Present Value Tables
Present value of $1
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents