State whether the following statement is true or false and provide a hand-written explanation of your answer (your answer is limited to eight horizontal lines drawn on an A4 page in portrait orientation). The great advantage of the IRR technique over the NPV technique is that you don’t need to calculate a benchmark discount rate applicable to the project. This is useful as we don’t really have a way of estimating a discount rate that can be used in the NPV analysis of a project.
State whether the following statement is true or false and provide a hand-written explanation of your answer (your answer is limited to eight horizontal lines drawn on an A4 page in portrait orientation). The great advantage of the IRR technique over the NPV technique is that you don’t need to calculate a benchmark discount rate applicable to the project. This is useful as we don’t really have a way of estimating a discount rate that can be used in the NPV analysis of a project.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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State whether the following statement is true or false and provide a hand-written explanation of your
answer (your answer is limited to eight horizontal lines drawn on an A4 page in portrait orientation).
The great advantage of the IRR technique over the NPV technique is that you don’t need to calculate a
benchmark discount rate applicable to the project. This is useful as we don’t really have a way of estimating
a discount rate that can be used in the NPV analysis of a project.
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