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A Manager Will Prefer the IRR Rule Over the NPV

Question 44

Multiple Choice

A manager will prefer the IRR rule over the NPV rule if the manager:


A) Prefers to talk in terms of rates of return.
B) Can accurately forecast future cash flows.
C) Dislikes the discounted payback analysis.
D) Also prefers use of payback analysis.
E) Is considering mutually exclusive projects.

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