Which of the following statements is CORRECT?
A) The IRR method appeals to some managers because it gives an estimate of the rate of return on projects rather than a dollar amount,which the NPV method provides.
B) The discounted payback method eliminates all of the problems associated with the payback method.
C) When evaluating independent projects,the NPV and IRR methods often yield conflicting results regarding a project's acceptability.
D) To find the MIRR,we discount the TV at the IRR.
E) A project's NPV profile must intersect the X-axis at the project's WACC.

Question

Quizplus · Accepted Answer

The statement correctly explains one of the advantages of the IRR method over the NPV method. The IRR method expresses the return on investment as a percentage, while the NPV method gives the dollar value of the profit or loss.

Which of the Following Statements Is CORRECT