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PLEASE ANSWER ONLY IF ABSOLUTELY SURE. The internal rate of return (IRR) for an investment: On mutually exclusive projects may produce different project rankings than
| PLEASE ANSWER ONLY IF ABSOLUTELY SURE. The internal rate of return (IRR) for an investment: | ||||||||||
| On mutually exclusive projects may produce different project rankings than the net present value (NPV) method | ||||||||||
| Would tend to be reduced if a company used an accelerated method of depreciation for tax purposes rather than the straight-line (SL) method | ||||||||||
| Frequently results in positive net present value (NPV) on attractive projects | ||||||||||
| Generally coincides with the company's discount rate | ||||||||||
| Disregards discounted cash flows | ||||||||||
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