With Independent Projects,NPV and IRR Provide Identical Accept/reject Decisions

question 27

Multiple Choice

With independent projects,NPV and IRR provide identical accept/reject decisions.If,however,you have two mutually exclusive projects to evaluate,the most accurate thing you could say about the eventual results is that:

• A)NPV and IRR may give conflicting results
• B)NPV and IRR never give the same result
• C)NPV and IRR always give the same result
• D)IRR is more lenient in accepting

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Definitions:

Literal

Taking words in their usual or most basic sense without metaphor or exaggeration.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, suggesting a comparison.

Sentence

A group of words that forms a complete thought, generally including a subject and a verb, that expresses a declaration, inquiry, exclamation, or directive.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.