Question
For which situation is the IRR method most likely to give you the correct investment recommendation? A single project where we invest money today and
For which situation is the IRR method most likely to give you the correct investment recommendation?
A single project where we invest money today and next year and then recieve positive cash flows starting in year 2 | ||
Comparing two mutually exclusive projects where one project requires a much bigger initial investment than the other | ||
Comparing two mutually exclusive projects where one project will have a much shorter duration than the other | ||
A single project where we will invest money today, recieve positive cash flows in years 1-5, and then have a large negative cash flow in year 6 as we wind down the project | ||
None of the above |
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