When using internal rate of return for project evaluation, you can meet the following problems: A)No solution or more than one solution B)Internal rate of return can not be calculated for bonds. C)The same rule for all evaluated decisions: IRR>r D)IRR gives dijerent result than NPV
When using internal rate of return for project evaluation, you can meet the following problems: A)No solution or more than one solution B)Internal rate of return can not be calculated for bonds. C)The same rule for all evaluated decisions: IRR>r D)IRR gives dijerent result than NPV
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When using internal rate of return for project evaluation, you can meet the following problems:
A)No solution or more than one solution
B)Internal rate of return can not be calculated for bonds. C)The same rule for all evaluated decisions: IRR>r
D)IRR gives dijerent result than NPV
Transcribed Image Text:When using internal rate of return for project evaluation, you can meet the following problems:
a.
No solution or more than one solution
b.
Internal rate of return can not be calculated for bonds.
C.
The same rule for all evaluated decisions: IRR>r
d.
IRR gives different result than NPV
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