Which of the Following Is Not an Important Advantage of the Net

question 68

Multiple Choice

Which of the following is not an important advantage of the net present value (NPV) method over the internal rate of return (IRR) method in evaluating capital investment proposals?

• A) NPV facilitates comparisons of mutually exclusive projects requiring different amounts of initial investments.
• B) NPV facilitates comparisons among mutually exclusive projects that have the same useful life but different initial outlays.
• C) NPV can be used to determine an optimum capital budget under conditions of capital rationing, while IRR cannot.
• D) NPV is relatively intuitive (compared, for example, to IRR).
• E) IRR relies on discounted cash-flow analysis, while NPV does not.

---

Definitions:

Datasheet

A document that summarizes the performance and other technical characteristics of a product, material, component, or system in detail.

Query Design View

A graphical user interface in database software that helps users construct and visualize database queries.

Update

The process of making changes, additions, or corrections to software or data to bring it up to date.

Self Join

A type of SQL join where a table is joined to itself to extract information that is related within the same table.