Which of the Following Is True of the IRR Method

question 3

Multiple Choice

Which of the following is true of the IRR method?

• A)IRR of a project is the rate of return which makes the net present value equal to zero.
• B)When IRR and NPV methods give conflicting results in the selection of mutually exclusive projects,the project selection should be based on IRR.
• C)When IRR gives multiple values,the IRR with the higher value should be accepte
• D)If there is no cash outflow after the initial investment,IRR will take multiple values.

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