Which statemen is true? A. IRR and NPV always lead to the same decision about projects. B. Discounted payback period is most likely greater than the payback period. C. A project with a non-standard cash flow can have multiple IRRs, all of them being valid. D. Looking at 2 mutually exclusive projects, higher IRR means a better project.
Which statemen is true? A. IRR and NPV always lead to the same decision about projects. B. Discounted payback period is most likely greater than the payback period. C. A project with a non-standard cash flow can have multiple IRRs, all of them being valid. D. Looking at 2 mutually exclusive projects, higher IRR means a better project.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 11P
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Question
Which statemen is true?
A.
B.
Discounted payback period is most likely greater than the payback period.
C.
A project with a non-standard cash flow can have multiple IRRs, all of them being valid.
D.
Looking at 2 mutually exclusive projects, higher IRR means a better project.
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