When Net Present Value and Internal Rate of Return Analysis

question 90

True/False

When net present value and internal rate of return analysis provide inconsistent rankings of projects, the financial manager should generally move forward with the project that has the highest internal rate of return.

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Definitions:

Nearest Cent

Rounding an amount to the closest cent (1/100th of a currency unit) in financial calculations.

Evaluate

To assess or examine something in order to gain an understanding of it, often leading to a judgment or conclusion.

Nearest Cent

Rounding a monetary amount to the closest cent, commonly used in cash transactions to simplify payment.

Evaluate

To evaluate or ascertain the worth, importance, or state of something by conducting a thorough examination and analysis.