State whether the following statement is true or false and provide a hand-written explanation of your

answer (your answer is limited to eight horizontal lines drawn on an A4 page in portrait orientation).

The great advantage of the IRR technique over the NPV technique is that you dont need to calculate a

benchmark discount rate applicable to the project. This is useful as we dont really have a way of estimating

a discount rate that can be used in the NPV analysis of a project.