Sometimes when management decisions are reached, the investment project with the highest NPV or IRR is not selected.This occurs because:
A)a lower IRR is a less risky investment.
B)the highest NPV is not necessarily the highest IRR.
C)qualitative factors override quantitative analysis techniques.
D)sometimes management makes the wrong decision.

Question

Quizplus · Accepted Answer

Qualitative factors such as strategic alignment, environmental impact, or regulatory considerations can influence decision-making, leading management to choose a project that doesn't have the highest NPV or IRR.

Sometimes When Management Decisions Are Reached, the Investment Project with the Highest