Question
The net present value (NPV) method is considered to be a better method of evaluation than the internal rate of return (IRR) method because the
The net present value (NPV) method is considered to be a better method of evaluation than the internal rate of return (IRR) method because the NPV method
a)uses time value of money while IRR does not.
b)is a more liberal method of analysis.
c)assumes that cash flows can be reinvested at the firm's more conservative cost of capital.
d)None of these options are true.
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Financial Institutions Management
Authors: Anthony Saunders, Marcia Cornett
8th Edition
0078034809, 978-0078034800
