General Studies · Investment Appraisal Methods
Which TWO of the following statements are true regarding the Internal Rate of Return (IRR) and Net Present Value (NPV) methods of investment appraisal? 1. IRR ignores the relative sizes of alternative investments. 2. IRR is easy and straightforward to use where there are non-conventional cash flows. 3. NPV is widely used and favored in practice because it aligns with maximizing shareholder wealth. 4. IRR is technically superior to NPV in all capital budgeting situations.
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