Reasons NPV, IRR, MIRR, and PI Will Sometimes Disagree in the Case

question 45

Multiple Choice

Reasons NPV, IRR, MIRR, and PI will sometimes disagree in the case of mutually exclusive investments include all of the following except:

• A) different cash flow patterns.
• B) different time horizons.
• C) different sizes.
• D) different locations.

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Definitions:

Rent Revenue Receivable

This is income that a company expects to receive from properties it rents out but has not yet collected.

Adjusting Entry

An accounting record created at the conclusion of a financial period for the purpose of assigning earnings and costs to the period they were incurred.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue; also known as net earnings.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability on a per-share basis.