When Evaluating Capital Projects, the Decisions Using the NPV Method

question 13

Multiple Choice

When evaluating capital projects, the decisions using the NPV method and the IRR method will agree if:

• A) the projects are independent.
• B) the cash flow pattern is conventional.
• C) the projects are mutually exclusive.
• D) both a and b.

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Definitions:

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Growth Rate

The rate at which a population or an organism grows, usually expressed as a percentage per unit time.

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