For two mutually projects, we assume their NPV profiles cross and the crossover rate is...
50.1K
Verified Solution
Link Copied!
Question
Finance
For two mutually projects, we assume their NPV profiles cross and the crossover rate is 9.3%. We assume the require rate of return is r. We use both NPV and IRR methods to analyze the two projects. Which of the following statements is most correct?
A. If r > 8.3%, NPV and IRR methods always obtain similar decisions.
B. If r > 9.3%, NPV and IRR methods obtain conflicting decisions.
C. If r < 8.3%, NPV and IRR methods might obtain conflicting decisions.
D. None of the above statement is correct.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.