The internal rate of return Select one: A. is easier to apply than net present v

ID: 1174613 • Letter: T

Question

The internal rate of return

Select one:

A. is easier to apply than net present value when cash flows are unconventional.

B. is the discount rate that makes the net present value of a project equal to one.

C. will provide the same accept/reject decision as NPV when cash flows are conventional and projects are independent.

D. is more reliable as a decision making tool than net present value when considering mutually exclusive projects.

E. is influenced by daily changes in the market rate of interest.

C. will provide the same accept/reject decision as NPV when cash flows are conventional and projects are independent.

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