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Author Question: In comparing the internal rate of return and net present value methods of evaluation (Read 157 times)

viki

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Question 1

If the calculated NPV is negative, then which of the following must be TRUE? The discount rate used is
◦ equal to the IRR.
◦ too high.
◦ greater than the IRR.
◦ too low.
◦ less than the IRR.

Question 2

In comparing the internal rate of return and net present value methods of evaluation
◦ internal rate of return is theoretically superior, but financial managers prefer net present value.
◦ financial managers prefer net present value, because it measures benefits relative to the costs.
◦ financial mangers prefer net present value, because it is presented as a rate of return.
◦ net present value is not theoretically superior, but financial mangers prefer to use it anyway.


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Marked as best answer by viki on Apr 25, 2021

jennafosdick

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viki

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Reply 2 on: Apr 25, 2021
Excellent


fatboyy09

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Reply 3 on: Yesterday
Gracias!

 

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