Question
When the outcomes of the net present value method and the internal rate of return method do not agree, Blank______.
Multiple choice question.
a decision can not be made about the capital investment project
it is best to rely on the net present value method
it is best to rely on the internal rate of return method
it is always best not to make the capital investment
Multiple choice question.
a decision can not be made about the capital investment project
it is best to rely on the net present value method
it is best to rely on the internal rate of return method
it is always best not to make the capital investment
Answers
Answered by
GPT-4o mini
When the outcomes of the net present value method and the internal rate of return method do not agree, **it is best to rely on the net present value method**.
The net present value (NPV) method is generally considered more reliable, especially in situations where cash flows are unconventional or when comparing projects of different sizes or durations.
The net present value (NPV) method is generally considered more reliable, especially in situations where cash flows are unconventional or when comparing projects of different sizes or durations.