On a purely theoretical basis, NPV is a better approach when ...

[future617RT]

On a purely theoretical basis, NPV is a better approach when selecting among two mutually exclusive projects.
 
  Indicate whether the statement is true or false

Question 2

The internal rate of return assumes that a project's intermediate cash inflows are reinvested at a rate equal to the firm's cost of capital.
 
  Indicate whether the statement is true or false

[Jadwiga9]

Answer to Question 1

TRUE

Answer to Question 2

FALSE