问题如下:
Which of the following statements regarding IRR and NPV is most accurate when company compares projects?
选项:
A.If the required rate of return is less than IRR, the project can definitely be accepted.
B.When evaluating independent and mutually exclusive projects, the NPV method is more accurate.
C.The NPV method and IRR method are in a equivalance relation.
解释:
B is correct.
The IRR method can not reflect the project earning accurately. When IRR>0, the project may have a negative NPV. Meanwhile, the IRR can't reflect the scale of the project. Compared with IRR method, the NPV method is more accurate. When NPV>0, the project can be accepted.
A为什么错了?B选项为什么强调那两种情况?C啥意思?