Which of the following statements about capital budgeting decision rules is corr
ID: 2783219 • Letter: W
Question
Which of the following statements about capital budgeting decision rules is correct? When evaluating mutually exclusive projects, NPV and IRR will always provide identical accept/reject decision answers. When evaluating independent projects, NPV and IRR sometimes provide conflicting answers, but IRR will always provide the correct answer. When evaluating mutually exclusive projects, NPV and IRR sometimes provide conflicting answers, but IRR will always provide the correct answer. When evaluating independent projects, NPV and IRR will always provide identical accept/reject decision answers.
Explanation / Answer
Correct answer regarding capital budgeting is "When evaluating independent projects, NPV and IRR will always provide identical accept/reject decision answers.".
Option (D) is correct answer