The Relationship Between NPV and IRR Is Such That

question 109

Multiple Choice

The relationship between NPV and IRR is such that:

• A)both approaches always provide the same ranking of alternative investment projects.
• B)the IRR of a project is equal to the firm's cost of capital if the NPV of a project is $0.
• C)if the NPV of a project is negative, the IRR must be greater than the cost of capital.
• D)None of the above

---

Definitions:

Recall

The ability to remember previously learned information or experiences.

Advertising Impact

The effect or influence advertising campaigns have on consumer awareness, attitudes, preferences, and ultimately, purchasing behavior.

Unipolar Emotions

Emotions that are experienced on a single continuum ranging from the presence to the absence of the emotion, rather than being opposite to another emotion.

Mixed Emotions

Feeling two or more contradictory emotions at the same time towards a single object, person, or situation.