Question: which statement is incorrect? Net Present Value Profile 50,000 40,000 30,000 NPV -A 20,000 NPV-B 10,000 0 02 4 6 8 10 12 14 16

Net Present Value Profile 50,000 40,000 30,000 NPV -A 20,000 NPV-B 10,000 0 02 4 6 8 10 12 14 16 -10,000 Discount Rates (%) When cash flow of project A has opposite direction of CF of project B, NPV and IRR tend to give conflicting ranks. See the table above. Among these three projects below, you should pick project B. When the scale of cash flow of projects A and B are different, NPV and IRR tend to give conflicting ranks. From the above graph, we should pick project B. Net Present Value Profile 50,000 40,000 30,000 NPV -A 20,000 NPV-B 10,000 0 02 4 6 8 10 12 14 16 -10,000 Discount Rates (%) When cash flow of project A has opposite direction of CF of project B, NPV and IRR tend to give conflicting ranks. See the table above. Among these three projects below, you should pick project B. When the scale of cash flow of projects A and B are different, NPV and IRR tend to give conflicting ranks. From the above graph, we should pick project B
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