Net present value is generally preferred over Internal Rate of Return (IRR) method because:

CS Executive · Financial and Strategic Management · PYQS · June 2022
Net present value is generally preferred over Internal Rate of Return (IRR) method because:
(A) It is comparatively simple to operate
(B) It does not suffer from limitations of multiple rates
(C) The reinvestment assumption under NPV method is more realistic
(D) All of the above

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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