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NEW QUESTION: 1
C. project team
References: Kim Heldman, CompTIA Project+ Study Guide, 2nd Edition, Sybex, Indianapolis, 2017, p. 133
NEW QUESTION: 2
Which of the following is false?
A. A project with a higher IRR is always preferable to a project with a lower IRR.
B. Both IRR and NPV rules are based on cash flow discounting.
C. All of these answers.
D. The IRR and NPV rules do not always give the same project rankings.
You should always use the NPV criterion for selecting projects. The IRR method can give project rankings different from the NPV criterion depending on the type of cash flows of the project as well as the cost of capital involved. Further, a project with a higher NPV at the project's cost of capital can have a lower IRR than another project with lower NPV. Therefore, (III) is false.