What is the difference between NPV and IRR?
A) NPV measures profitability in absolute terms, whereas the IRR method measures profitability in relative terms.
B) NPV is used on one project only and IRR is used when choosing among competing, mutually exclusive projects.
C) NPV considers the time value of money, and IRR does not.
D) Both NPV and IRR will generate the same decisions.
Correct Answer:
Verified
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