Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. real-world financial decision makers often use the

Real-world financial decision makers often use the internal rate of return (IRR) over the net...

90.2K

Verified Solution

Question

Finance

Real-world financial decision makers often use the internal rate of return (IRR) over the net present value (NPV) as their primary capital-budgeting decision tool because:

A. the IRR calculation is independent of the estimated hurdle rate whereas the NPV calculation is dependent upon the estimated hurdle rate.
B. the IRR calculation is dependent on the estimated hurdle rate whereas the NPV calculation is independent of the estimated hurdle rate.
C. the NPV calculation is subject to the borrowing/lending problem.
D. the IRR calculation is subject to the borrowing/lending problem.
E. the IRR calculation provides an exact estimate of the wealth created or destroyed.

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students