3. Which of the following best describes the relationship between IRR and NPV rules? If...
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3. Which of the following best describes the relationship between IRR and NPV rules?
If IRR of project A is greater than IRR of project B, accept A even if NPV of B is higher
If NPV of project B is greater than NPV of project A, accept B even if IRR of A is higher
If IRR of project A is lower than hurdle rate and IRR of B is higher than hurdle rate, accept project A because it will have a higher NPV
If NPV of project A is higher than B and IRR of project B is higher than project A, decide with payback rule
If IRR of project B is equal to the discount rate and NPV of B is positive, accept project B.
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