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The Firm Is Considering Two Investment Projects, a and B

Question 82

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:

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