Which of the Following Statements Is Correct

question 77

Multiple Choice

Which of the following statements is correct?

• A)One advantage of the NPV over the IRR is that NPV takes account of cash flows over a project's full life whereas IRR does not.
• B)One advantage of the NPV over the IRR is that NPV assumes that cash flows will be reinvested at the WACC, whereas IRR assumes that cash flows are reinvested at the IRR. The NPV assumption is generally more likely to be appropriate.
• C)One advantage of the NPV over the MIRR method is that NPV takes account of cash flows over a project's full life whereas MIRR does not.
• D)One advantage of the NPV over the MIRR method is that NPV discounts cash flows whereas the MIRR is based on undiscounted cash flows.

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Definitions:

CB Richard Ellis

A global commercial real estate services company, providing a broad range of integrated services to real estate investors and occupiers.

Exit Interviews

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Upward Communication

The process where information or feedback is sent from lower levels of a hierarchy to the higher levels within an organization.

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A policy where managers encourage employees to come forward with their concerns, questions, or suggestions, but with certain restrictions or scheduled times.