Which of the following statements is true regarding the NPV and IRR methods? Select all that apply.
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Question:
Which of the following statements is true regarding the NPV and IRR methods? Select all that apply.
I. | The NPV method is adjusted for the scale of an investment and is therefore superior to the IRR method. | |
II. | The IRR method is adjusted for the scale of an investment and is therefore superior to the NPV method. | |
III. | The NPV method adjusts for the timing of cash flows and is therefore superior to the IRR method. | |
IV. | The NPV method adjusts for the risk of an investment and is therefore superior to the IRR method. | |
V. | The IRR method adjusts for the timing of cash flows and is therefore superior to the NPV method. | |
VI. | The IRR method adjusts for the risk of an investment and is therefore superior to the NPV method. |
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