Financial Management-Capital Budgeting Decisions- Risk Analysis (CBSE-NET (UGC) Management (Paper-II & Paper-III)): Questions 4 - 4 of 4
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Question number: 4
» Financial Management » Capital Budgeting Decisions- Risk Analysis
Appeared in Year: 2015
Statement-I: In general, the NPV and IRR methods lead to the same acceptance or rejection decision, when a single project is involved.
Statement-II: The inconsistency in ranking of competing projects as per the NPV and IRR methods lies in the implicit assumptions with regard of different rates of returns on re-investment of intermediate cash flows.
Statement-I is incorrect, statement-II is correct
The statements I and statement II are correct
Statement-I is correct, statement II is incorrect
The statements I and statement II are incorrect