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Author Question: On a purely theoretical basis, NPV is preferred over IRR because NPV assumes a more conservative ... (Read 45 times)

chads108

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on: Jul 10, 2018
On a purely theoretical basis, NPV is preferred over IRR because NPV assumes a more conservative reinvestment rate and does not exhibit the mathematical problem of multiple IRRs that often occurs when IRRs are calculated for nonconventional cash
 
  flows.
  Indicate whether the statement is true or false

Question 2

Certain mathematical properties may cause a project with a nonconventional cash flow pattern to have multiple IRRs; this problem does not occur with the NPV approach.
 
  Indicate whether the statement is true or false


macagn

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Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

TRUE


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