Which of the following is true: A. IRR is superior to NPV for choosing between d
ID: 2728470 • Letter: W
Question
Which of the following is true:A. IRR is superior to NPV for choosing between different projects B. The NPV decision rule says to accept an investment of the NPV is positive C. Payback ignores the projects cost D. The IRR decision rule states that a project should be accepted if it's IRR is equal to zero E. The discount rate that causes the net present value of a project to equal zero is called the market rate Which of the following is true:
A. IRR is superior to NPV for choosing between different projects B. The NPV decision rule says to accept an investment of the NPV is positive C. Payback ignores the projects cost D. The IRR decision rule states that a project should be accepted if it's IRR is equal to zero E. The discount rate that causes the net present value of a project to equal zero is called the market rate Which of the following is true:
A. IRR is superior to NPV for choosing between different projects B. The NPV decision rule says to accept an investment of the NPV is positive C. Payback ignores the projects cost D. The IRR decision rule states that a project should be accepted if it's IRR is equal to zero E. The discount rate that causes the net present value of a project to equal zero is called the market rate
Explanation / Answer
Answer: B. The NPV decision rule says to accept an investment of the NPV is positive