Question: Results from the net present value (NPV) method and the internal rate of return (IRR) method may differ between projects if the projects differ in

Results from the net present value (NPV) method and the internal rate of return (IRR) method may differ between projects if the projects differ in all the following except:

Multiple Choice

  • Required initial investment.
  • Cost of capital (i.e., discount rate).
  • Cash-flow pattern.
  • Book (accounting) rate of return on the two projects.
  • Length of useful life of the two projects.

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