If NPV and IRR Produce Different Rankings, Which Method Should

question 2

Multiple Choice

If NPV and IRR produce different rankings, which method should be used in choosing investment projects?

• A)payback
• B)accounting rate of return
• C)net present value
• D)internal rate of return

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Definitions:

Electronic Device

A device that uses electrical energy to perform a function, ranging from simple to complex, like smartphones or medical equipment.

Amplifies Sound

The action of increasing the volume or intensity of sound waves, making sounds louder or more audible.

Hearing Aid

An electronic device worn in or behind the ear, designed to amplify sound for individuals with hearing loss.

Receiver Port

A component in medical devices designed to accept and secure another part, such as a tube or sensor, facilitating connection or function.