In comparing the IRR and NPV methods of capital budgeting analysis, which of the following statements is generally accepted as true?

Group of answer choices

They are considered the same; neither is viewed as a superior methodology.

IRR is considered superior because it is sometimes possible to calculate 2 different correct IRRs for the same problem.

Kerry's Kettle Korn Shop is considering an investment in a new popcorn popping machine. The machine will cost $10,000. The net cost of the machine (accounting for the sale of the old one) is projected to be $5,000. Assuming the 5-year MACRS depreciation schedule (Yr1: .20; Yr2: .32; Yr3: .192; Yr4: .115; Yr5: .115; Yr6: .058), what will be the company's depreciation charge for the new machine in year 3?

Group of answer choices

$960

$1,000

$2,000

$1,920

NPV is considered the superior method because it is more conservative in its assumptions and is more accurate than IRR.

IRR is considered superior because of its aggressive assumption that future cash flows can be reinvested at the IRR.