NPV Differs from IRR

question 53

Multiple Choice

NPV differs from IRR:

• A) NPV measures profitability in absolute terms, whereas the IRR method measures profitability in relative terms.
• B) IRR should be used for choosing among competing, mutually exclusive projects.
• C) NPV considers the time value of money and IRR does not.
• D) Both NPV and IRR will generate the same decisions.

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