Conflict Will Exist Between the NPV and IRR Methods, When

question 43

True/False

conflict will exist between the NPV and IRR methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects' cost of capital exceeds the rate at which the projects' NPV profiles cross.

---

Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood, controlling basic emotions and drives.

Engram

An assumed electrical circuit in the brain that corresponds to a memory trace.

Serial-Position Effect

The tendency to recall more accurately the first and last items in a series.

Maintenance Rehearsal

Mental repetition of information to keep it in memory.