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NPV Differs from IRR

Question 53

Multiple Choice

NPV differs from IRR:


A) NPV measures profitability in absolute terms, whereas the IRR method measures profitability in relative terms.
B) IRR should be used for choosing among competing, mutually exclusive projects.
C) NPV considers the time value of money and IRR does not.
D) Both NPV and IRR will generate the same decisions.

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