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    Intermediate Financial Management
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    Exam 12: Capital Budgeting
  5. Question
    Primary Reason That the NPV Method Is Conceptually Superior to the IRR
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Primary Reason That the NPV Method Is Conceptually Superior to the IRR

Question 42

Question 42

True/False

primary reason that the NPV method is conceptually superior to the IRR method for evaluating mutually exclusive investments is that multiple IRRs may exist, and when that happens, we don't know which IRR is relevant.

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