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1 FINANCE MCQS

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value (NPV) usually lead to ____________?

  • Cash flow decision
  • Cost decision
  • Same decisions
  • Different decisions
Correct Answer: C. Same decisions

Detailed Explanation

For independent projects, both IRR and NPV methods generally result in the same decision (either accept or reject), as each project is evaluated on its own merits and does not compete with others for selection.

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