With non-mutually exclusive events and no capital rationing, we will usually arrive at the same conclusions using either the net present value or internal rate of return methods.

Question

Quizplus · Accepted Answer

When there are non-mutually exclusive events and no capital rationing, the net present value and internal rate of return methods are both suitable for evaluating investment options. In this scenario, both methods will generally lead to the same investment decision. Therefore, the statement is true.

With Non-Mutually Exclusive Events and No Capital Rationing, We Will