Economics · Financial Management
In the case of independent project evaluation with accept-reject decisions and conventional cash flows, which of the following statements is true?
- 1NPV and IRR methods are never used for project evaluation
- 2NPV and IRR methods are completely unrelated and cannot evaluate projects
- 3NPV and IRR methods produce conflicting accept-reject decisions
- 4NPV and IRR methods produce identical accept-reject decisions✓
Correct answer
NPV and IRR methods produce identical accept-reject decisions
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