a) On a purely theoretical basis, IRR is a better approach when selecting among two mutually exclusive projects.

True

False

Rationale:

b) Net present value (NPV) assumes that intermediate cash inflows are reinvested at the cost of capital, whereas internal rate of return (IRR) assumes that intermediate cash inflows can be reinvested at a rate equal to the project's IRR.

True

False

Rationale:

c)Conflicting rankings in the case of mutually exclusive projects using NPV and IRR often result from differences in the magnitude and/or timing of cash flows.

True

False

Rationale: