Question
Which of the following statements about various capital budgeting criteria is FALSE? Group of answer choices A basic rule in capital budgeting is that if
Which of the following statements about various capital budgeting criteria is FALSE? Group of answer choices A basic rule in capital budgeting is that if a project's NPV exceeds its IRR, then the project should be accepted. The internal rate of return is that discount rate that equates the present value of the cash outflows (or costs) with the present value of the cash inflows. The NPV method is based on the assumption that projects' cash flows are reinvested at the project's risk-adjusted cost of capital. One advantage of the payback method for evaluating potential investments is that it provides information about a project's liquidity and risk.
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