Question
Which of the following explains the conflict between NPV and IRR while evaluating mutually exclusive projects? a NPV takes into account the time value of
Which of the following explains the conflict between NPV and IRR while evaluating mutually exclusive projects?
| a | NPV takes into account the time value of money while IRR does not |
| b | NPV assumes the cash flows are reinvested at the cost of capital while IRR assumes cash flows are reinvested at IRR |
| c | The larger the size of the project the higher the NPV, which causes the conflict between NPV and IRR |
| d | The number of sign changes in the cash flows causes the conflict between NPV and IRR |
| e | None of the above is correct |
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Auditing
Authors: Alan Millichamp, John Taylor
12th Edition
9781473778993
