In Comparing the Internal Rate of Return and Net Present

Multiple Choice

In comparing the internal rate of return and net present value methods of evaluation, ________.

A) internal rate of return is theoretically superior, but financial managers prefer net present value
B) net present value is theoretically superior, but financial managers prefer to use internal rate of return
C) financial managers prefer net present value, because it is presented as a rate of return
D) financial managers prefer net present value, because it measures benefits relative to the amount invested