For Conventional Projects, Both NPV and IRR Techniques Will Always

question 67

True/False

For conventional projects, both NPV and IRR techniques will always generate the same accept-reject decision, but differences in their underlying assumptions can cause them to rank mutually exclusive projects differently.

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Definitions:

Economize

The act of using resources efficiently, especially to reduce costs.

Payroll Tax

A tax imposed on employers or employees, and is usually calculated as a percentage of the salaries that employers pay their staff.

Medicare Beneficiaries

Individuals who are eligible to receive health care benefits under the Medicare program, typically those aged 65 and over or with certain disabilities.