Quiz Ch 11 – T/F NPV’s Conceptual Advantage over IRR in Mutually Exclusive Investments
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: The NPV method is considered conceptually superior to the IRR method in evaluating mutually exclusive investments mainly due to the potential existence of multiple IRRs. In such cases, the relevance of the different IRRs is uncertain.