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

question 87

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 resultsrankings
• B)NPV and IRR never give the same resultrankings
• C)NPV and IRR always give the same resultrankings
• D)IRR is more lenient in accepting

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.

Mean Age

The mean age of a specific group or population, determined by adding together the ages of all members and then dividing by the total number of members.

Heights of Men

The distribution of vertical measurements of adult males in a specific population or group.

Standard Deviation

A parameter reflecting the extent of diversity or spread in a group of numbers.