Question: When evaluating a project, the most reliable decision making rules are the NPV and IRR. However, we heve learned that NPV rule is more reliable
When evaluating a project, the most reliable decision making rules are the NPV and IRR. However, we heve learned that NPV rule is more reliable than the IRR because of a few special cases in which the IRR rule gives an incorrect answac. What are those special cases? 1. The firm is evaluating several mutually exclusive projects 2. When the NPV of a project is equal to 0 3. The project has non-normal cash flows 4. When the project involves aliens Select one: a. 2 and 4 only. b. all of the above. c. 1 and 2 only. d. 1 and 3 only. e. 1,2 , and 3
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