PLEASE ANSWER ONLY IF ABSOLUTELY SURE. The internal rate of return (IRR) for an

Question

PLEASE ANSWER ONLY IF ABSOLUTELY SURE.

The internal rate of return (IRR) for an investment:  

PLEASE ANSWER ONLY IF ABSOLUTELY SURE.

The internal rate of return (IRR) for an investment:  

On mutually exclusive projects may produce different project rankings than the net present value (NPV) method Would tend to be reduced if a company used an accelerated method of depreciation for tax purposes rather than the straight-line (SL) method Frequently results in positive net present value (NPV) on attractive projects Generally coincides with the company's discount rate Disregards discounted cash flows

Explanation / Answer

On mutually exclusive projects may produce different project rankings than the net present value (NPV) method.

Npv rankings based on project adding more dollar value higher regardless of the original investment required.

IRR rankings based on projects offering best investment return higher regardless of the total value added.

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