Multiple Choice
The firm is considering two investment projects, A and B. If the firm is able to compute only the net present value or the internal rate of return. Which of the two measures is more reliable?
A) The internal rate of return.
B) Net present value.
C) Both always give the same recommendation.
D) Not enough information.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q77: Assume that each of the following
Q78: The firm has computed the net present
Q79: In general, a firm should undertake a
Q80: A firm that uses a discount rate
Q81: What should the price of a share
Q83: A firm is likely to select a
Q84: A firm is considering two alternative
Q85: The cost of raising equity capital should
Q86: The risk encountered by a firm when
Q87: If the net present value (NPV) method