Which of the following statements is correct? - NPV method is the only method firms should use to make investment decisions - The internal rate of return method cannot be applied mutually exclusive projects - The disadvantage of modified IRR method is that it would provide multiple IRRs when dealing with unconventional cashflows - The discounted payback period method does not take into account risk of cashflows
Which of the following statements is correct? - NPV method is the only method firms should use to make investment decisions - The internal rate of return method cannot be applied mutually exclusive projects - The disadvantage of modified IRR method is that it would provide multiple IRRs when dealing with unconventional cashflows - The discounted payback period method does not take into account risk of cashflows
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16MC: When using the NPV method for a particular investment decision, if the present value of all cash...
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Which of the following statements is correct?
-
- The
- The disadvantage of modified IRR method is that it would provide multiple IRRs when dealing with unconventional cashflows
- The discounted payback period method does not take into account risk of cashflows
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