No Conflict Will Exist Between the NPV and IRR Methods

question 87

True/False

No 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:

Consumer Price Index (CPI)

A metric that calculates the mean variation over time in the costs incurred by urban buyers for a selection of consumer products and services.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time.

Purchasing Patterns

The habits or trends that emerge among consumers regarding how they buy goods or services over time.

Nominal Gross Domestic Product (GDP)

The total market value of all final goods and services produced within a country in a given period, measured in current prices without adjusting for inflation.