In comparing the internal rate of return and net present valuemethods of evaluation, a) internal rate of
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Question:
In comparing the internal rate of return and net present valuemethods of evaluation,
| a) | internal rate of return is theoretically superior, but financialmanagers prefer net present value. | |
| b) | net present value is theoretically superior, but financialmanagers prefer to use internal rate of return. | |
| c) | financial managers prefer net present value, because it ispresented as a rate of return. | |
| d) | financial managers prefer net present value, because it measuresbenefits relative to the amount invested. |
Expert Answer:
IRR and NPV both discounted cash flow methods of capital budgeting with their own advantages and ... View the full answer
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