The NPV Method Is the Preferred Method Over IRR for Selecting

question 78

Multiple Choice

The NPV method is the preferred method over IRR for selecting projects because ________.

• A) its result is expressed in dollars and management can make an assessment as to its financial impact on the value of the business
• B) it accounts for the time value of money better than IRR
• C) it assumes that cash flows are reinvested at the internal rate of return for each and every year of the useful life
• D) it gives a project ranking consistent with that of IRR

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Definitions:

Therapy

The treatment of mental or psychological disorders by psychological means.

Psychological Disorder

A mental disorder characterized by dysfunction in emotions, behaviors, or thoughts leading to significant distress or impairment in daily life.

Less Education

A term indicating lower levels of formal schooling or academic achievement compared to others.

Behavior Therapy

A therapeutic approach focused on changing undesirable behaviors through conditioning techniques.