The NPV and IRR Methods,when Used to Evaluate Two Independent

question 97

True/False

The NPV and IRR methods,when used to evaluate two independent and equally risky projects,will lead to different accept/reject decisions and thus capital budgets if the projects' IRRs are greater than their costs of capital.

---

Definitions:

Hydroelectric Plants

Facilities that produce electricity by using water flow to drive turbines, often located at dams in rivers or streams.

Switzerland

A country in Central Europe known for its mountainous landscape, neutral policy, and high standard of living.

Norway

A Scandinavian country known for its mountains, fjords, and deep coastal inlets, as well as a high standard of living and strong emphasis on environmental conservation.

Passive Solar Design

A design philosophy that utilizes a building's orientation, window placement, and construction materials to minimize energy use by capturing and distributing solar energy naturally.