Which of the following statements is/are true? When IRR, PI, Payback period, discounted...
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Finance
Which of the following statements isare true? When IRR, PI Payback period, discounted payback period and NPV decision rules give conflicting answers, then decision should be based on the PI I. IRR decision rule can be reliably used to choose between mutually exclusive projects. III. Discounted payback period can be reliably used to choose between mutually exclusive projects. A I B I and II C II and III D I, II and III E None of the above
Which of the following statements isare true?
When IRR, PI Payback period, discounted payback period and
NPV decision rules give conflicting answers, then decision
should be based on the PI
I. IRR decision rule can be reliably used to choose between
mutually exclusive projects.
III. Discounted payback period can be reliably used to choose
between mutually exclusive projects.
A I
B I and II
C II and III
D I, II and III
E None of the above
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