Question

    In case of mutually exclusive projects having uneven

    cash flows and when the result of NPV and IRR are conflicting; NPV is a better method because:
    A NPV considers time value of money Correct Answer Incorrect Answer
    B NPV considers all cash flows Correct Answer Incorrect Answer
    C NPV assumes reinvestment at the discounting rate, which is more realistic Correct Answer Incorrect Answer
    D NPV measures profitability Correct Answer Incorrect Answer

    Solution

    The correct answer is C

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