Which of the Following Is a Major Difference Between IRR

question 15

Multiple Choice

Which of the following is a major difference between IRR and NPV?

• A) NPV assumes that cash flows from projects are invested at the required rate of return while IRR assumes they are reinvested at the rate of return of that particular project.
• B) IRR assumes that cash flows from projects are invested at the required rate of return while NPV assumes they are reinvested at the rate of return of that particular project.
• C) NPV also gives multiple answers under some circumstances.
• D) Both a and b.
• E) Both b and c.

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Definitions:

Personality Traits

Enduring characteristics that describe an individual's behavior across different situations and time.

Multivariate Approach

An analytical strategy that involves the simultaneous observation and analysis of more than one outcome variable.

Bivariate Approach

An analytical method that involves the examination of two variables simultaneously to determine the empirical relationship between them.

Clinical Approach

A method in psychology that involves assessing and treating mental health disorders based on direct observation or interaction with patients.