What Is the Difference Between NPV and IRR

question 77

Multiple Choice

What is the difference between NPV and IRR?

• A)NPV measures profitability in absolute terms, whereas the IRR method measures profitability in relative terms.
• B)NPV is used on one project only and IRR is used when 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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Definitions:

Sedimentary Sequences

Layers of sedimentary rocks that record the geological history of an area, often showing a progression of depositional environments.

Groundwater

Water that is found in the pores and fractures in rock and soil beneath the Earth's surface, which can supply wells and springs.

Porphyry Copper Deposits

Large, low-grade mineral deposits containing dispersed copper-bearing minerals in a porphyritic host rock, often associated with intrusive igneous rocks.

Porphyritic Texture

A texture in igneous rock consisting of large crystal grains known as phenocrysts embedded in a fine-grained groundmass.