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Which of the Following Is True of the IRR Method

Question 13

Multiple Choice

Which of the following is true of the IRR method?


A) IRR of a project is the rate of return which makes the net present value equal to zero.
B) When IRR and NPV methods give conflicting results in the selection of mutually exclusive projects,the project selection should be based on IRR.
C) When IRR gives multiple values,the IRR with the higher value should be accepte
D) If there is no cash outflow after the initial investment,IRR will take multiple values.

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