The NPV Method Is the Preferred Method Over IRR for Selecting

question 78

Multiple Choice

The NPV method is the preferred method over IRR for selecting projects because ________.

• A) its result is expressed in dollars and management can make an assessment as to its financial impact on the value of the business
• B) it accounts for the time value of money better than IRR
• C) it assumes that cash flows are reinvested at the internal rate of return for each and every year of the useful life
• D) it gives a project ranking consistent with that of IRR

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Definitions:

Virginia Landowners

Individuals or entities that hold ownership rights over land in the state of Virginia, historically significant for their role in agricultural production, especially tobacco, and political leadership in early U.S. history.

Albemarle Region

A historical, culturally rich area in northeastern North Carolina, known for its early settlement and development during the colonial period.

Barbadian Influence

The cultural, political, and economic impact of Barbados and its people on other regions, particularly in the Caribbean and the Americas.

Slavery

A system in which individuals are owned by others, denied freedom, and forced to work without consent.