Share
Explore BrainMass

NPV and IRR

The IRR and NPV rules always lead to identical decisions if:
a. The project's cash flows are conventional.
b. The projects are mutually exclusive.
c. The projects are independent.
d. Both (a) and (b).
e. Both (a) and (c).

One investment opportunity should be rejected if its NPV is ________ and its IRR is ________.
a. Positive; Positive.
b. Positive; Greater than the required return.
c. Negative; Negative.
d. Negative; Smaller than the required return.
e. Negative; Greater than the required return.

Solution Preview

The IRR and NPV rules always lead to identical decisions if:
a. The project's cash flows are conventional.
b. The projects are mutually exclusive.
c. The projects are independent.
d. Both (a) and (b).
e. ...

Solution Summary

Answers 2 multiple choice questions on NPV and IRR.

$2.19