Consider the following statement: "When making a capital budgeting decision on a single, independent project, the internal rate of return (IRR) and the net present value (NPV) will always lead to the same accept/reject decision". This statement is _____.

Group of answer choices

a. TRUE

b. FALSE

Which of the following could be considered a disadvantage (or shortcoming) with using net present value (NPV) as your decision criterion when evaluating a capital budgeting project?

Group of answer choices

NPV accepts a project only if the present value of the cash inflows exceeds the present value of the cash outflows.

NPV is a "now or never" rule that ignores the option value of a project.

NPV fails to make the right decision when cash flows are non-conventional.

NPV fails to consider all future cash flows related to a project.

When using NPV and IRR decision rules to choose between two mutually exclusive projects, which of the following statements is true?

Group of answer choices

The choice of project will conflict if the discount rate is to the right of the crossover point.

The choice of project will conflict if the discount rate is to the left of the crossover point.

The choice of project will conflict if the NPV is equal to the IRR.

The choice of project will conflict only if the cash flows are non-conventional.

The decision criterion that fails to take into consideration the time value of money is _______________.

Group of answer choices

Net present value

Internal rate of return

Equivalent annual annuity

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