Solved

When Choosing Between Projects,an Alternative to Comparing Their IRRs Is

Question 21

Multiple Choice

When choosing between projects,an alternative to comparing their IRRs is:


A) to compute the incremental IRR,which tells us the discount rate at which it becomes profitable to switch from one project to the other.
B) to compute the incremental payback period,which tells us the number of years during which it becomes profitable to switch from one project to the other.
C) to compute the incremental NPV,which tells us the discount rate at which it becomes profitable to switch from one project to the other.
D) There is no alternative selection criterion to comparing IRRs.

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