The relationship between NPV and IRR is such that a. both approaches always provide the same ranking of alternative investment projects. b. the IRR of a project is equal to the firm's cost of capital if the NPV of a project is $0. c. if the NPV of a project is negative, the IRR must be greater than the cost of capital. d. none of the above
The relationship between NPV and IRR is such that a. both approaches always provide the same ranking of alternative investment projects. b. the IRR of a project is equal to the firm's cost of capital if the NPV of a project is $0. c. if the NPV of a project is negative, the IRR must be greater than the cost of capital. d. none of the above
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 12MCQ: Using NPV, a project is rejected if it is a. equal to zero. b. negative. c. positive. d. equal to...
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The relationship between NPV and
a. both approaches always provide the same ranking of alternative investment projects.
b. the IRR of a project is equal to the firm's cost of capital if the NPV of a project is $0.
c. if the NPV of a project is negative, the IRR must be greater than the cost of capital.
d. none of the above
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