American_Bankers_Association
CTFA · Question #295
Two mutually exclusive investment proposals have "scale differences" (i.e., the cost of the projects differ). Ranking these projects on the basis of IRR, NPV, and PI methods give contradictory…
The correct answer is C. May. See the full explanation below for the reasoning.
Investment Management
Question
Two mutually exclusive investment proposals have "scale differences" (i.e., the cost of the projects differ). Ranking these projects on the basis of IRR, NPV, and PI methods give contradictory results.
Options
- AWill never
- BWill always
- CMay
- DWill generally
How the community answered
(42 responses)- A12% (5)
- B2% (1)
- C81% (34)
- D5% (2)
Topics
#mutually exclusive projects#scale differences#IRR#NPV ranking conflicts
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