Question
Monica and Rachel are having a discussion about IRR and NPV as a decision model for Monicas new restaurant. Monica wants to use IRR because
Monica and Rachel are having a discussion about IRR and NPV as a decision model for Monicas new restaurant. Monica wants to use IRR because it gives a very simple and intuitive answer. Rachel states that there can be errors made with IRR that are not made with NPV. Do you agree with Rachels point? Show one type of error can be made with IRR and not with NPV? 6 marks
(6 Points)
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International Finance Theory And Policy
Authors: Paul Krugman, Maurice Obstfeld, Marc Melitz
12th Global Edition
1292417005, 978-1292417004
