Why might managers choose to use IRR in preference to NPV?
Question:
Why might managers choose to use IRR in preference to NPV?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
Both IRR and NPV can be used to determine how desirable a project will be and whether ...View the full answer
Answered By
Sandra Dimaala
Sandra from Philippines ,LICENSED PROFESSIONAL TEACHER.
Teachers are our nation builders—the strength of every profession in our country grows out of the knowledge and skills that teachers help to instill in our children. And, as a nation, we must do much, much more to fully appreciate and support their work.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Why might managers want to use other techniques besides NPV to make capital budgeting decisions?
-
Research indicates that the IRR method is extremely popular even though it has shortcomings when compared to the NPV method. Why might managers prefer to use IRR rather than NPV when carrying out...
-
Explain why NPV is generally preferred over IRR when choosing among competing or mutually exclusive projects. Why would managers continue to use IRR to choose among mutually exclusive projects?
-
8. A 12-tur square wire loop of 1-m length carrying a current of 1-A in the counter clockwise direction as shown in the figure. A magnetic field of magnitude 3000 G is directed into the board. Find,...
-
Hydrogen is bonded to fluorine in hydrogen fluoride by a covalent bond. Write a Lewis formula for hydrogen fluoride.
-
Your regular tennis partner has made a friendly wager with you. The two of you will play out one point in which you can serve. The loser pays the winner $100. If your first serve is not in play, you...
-
Consider reasons why an organization would choose the universalistic view of KM over the contingency view.
-
Parkers Wood Amenities is a manufacturing plant that makes picnic tables, benches, and other outdoor furniture. Indicate which inventory account(s) would be affected by the following actions, which...
-
QUESTION 1 - Case study Suppose that an asset had a cost of R10,000 and Accumulated Depreciation of R6,000, at the end of last year (2020). During the current year (2021) additions were made to the...
-
The Johnson Research Organization, a nonprofit organization that does not pay taxes, is considering buying laboratory equipment with an estimated life of seven years so it will not have to use...
-
Explain the theoretical arguments for preferring NPV to IRR when choosing among mutually exclusive projects.
-
(a) When a large car collides with a small car, which one undergoes the greater change in momentum: the large one or the small one? Or is it the same for both? (b) In light of your answer to part...
-
5-Fluorouracil-2-deoxyriboside (FUdR) is used in medicine as an antiviral and antitumor agent. From its name, draw its structure. How do you think FUdR performs its function?
-
Name the two major preceding management theories that contributed to the development of quality management theory. Briefly explain the major concepts of each of these preceding theories that were...
-
922-19x 8 After finding the partial fraction decomposition. (22 + 4)(x-4) dx = dz Notice you are NOT antidifferentiating...just give the decomposition. x+6 Integrate -dx. x33x The partial fraction...
-
The answer above is NOT correct. The value of (2x + 1)(x + x)dx is
-
Review the resource on organizational theory. Explore the various theories and select one to use for this Discussion. Consider the strengths and limitations of the chosen theory. Compose an analysis...
-
How do the locations of Australian department store Myer affect the ability of the other factors of the operating model canvas (suppliers, organization, processes, and information/management systems)...
-
On February 1, 2020, when the spot rate was $1.00 per Swiss franc, Blue Bogey Company (BBC) forecasted the purchase of component parts on May 1, 2020, at a price of 100,000 Swiss francs. On that...
-
Recall that Chapter 8 described the binary search algorithm for finding a particular entry in an ordered list. The idea behind binary search is to begin looking in the exact center of the list. If...
-
Anna-Greta Lantto, the assistant controller of Kiruna AB had recently prepared the following quality report comparing 2018 and 2017 quality performances. Just two days after preparing the report,...
-
Alcazarquivir Lda manufactures and sells industrial grinders. The following table presents financial information pertaining to quality in 2017 and 2018 (in 000): Required 1. Classify the cost items...
-
Lee SA manufactures various types of colour laser printer in a highly automated facility with high fixed costs. The market for laser printers is competitive. The various colour laser printers on the...
-
Kaidan Inc. is a Japanese firm located in Osaka. The firm spends JPY 15 million for an office building. We shall conclude that over the following period should the cost be written off. a. When the...
-
(Present value)Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $395,000 due in 25 years. In other words, they will need $395,000 in 25 years. Toni...
-
Assume that all the companies outside the United States do not use International Financial Reporting Standards (IFRS). Describe at least two obstacles to the worldwide comparability of financial...
Study smarter with the SolutionInn App