When Net Present Value and Internal Rate of Return Analysis

question 9

True/False

When net present value and internal rate of return analysis provide inconsistent rankings of projects, the financial manager should generally move forward with the project that has the highest internal rate of return.
In the event of such a conflict, all facts must be reconsidered, including the discount rate.

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Definitions:

Deviates

Individuals or behaviors that depart from the accepted standards or norms in a society or community.

Abnormality

A deviation from the average or norm, often used in the context of behaviors or conditions that are outside societal expectations or statistical averages.

Acceptable in a Culture

Behaviors, practices, or beliefs that are considered appropriate and conform to the norms within a specific culture.

Old Junk

Derogatory term for objects that are considered useless or of little value, often accumulated over time and cluttering space.