QUESTION 10
1. Identify the least accurate statement about the internal rate of return (IRR) and net present value (NPV) is
accurate from the statement below?

a. The discount rate that causes the project's NPV to be equal to zero is the project's IRR.

b. The IRR is the discount rate that equates the present value of the cash inflows with the present
value of the outflow.

c. For mutually exclusive projects, if the NPV rankings and the IRR rankings give conflicting signals,
you should select the project with the higher IRR.

d. For independent projects with conventional cash flows, there is no conflict between NPV and IRR
decision rules.