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Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The NPV and IRR methods will usually lead to [...] decisions.

Answer

the same accept or reject

But not always

But not always

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The NPV and IRR methods will usually lead to [...] decisions.

Answer

?

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The NPV and IRR methods will usually lead to [...] decisions.

Answer

the same accept or reject

But not always

But not always

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#### Parent (intermediate) annotation

**Open it**

The NPV and IRR methods will usually lead to the same accept or reject decisions.

#### Original toplevel document

**Subject 3. Investment Decision Criteria**

ject's NPV to equal zero. Note that this formula is simply the NPV formula solved for the particular discount rate that forces the NPV to equal zero. The IRR on a project is its expected rate of return. <span>The NPV and IRR methods will usually lead to the same accept or reject decisions. Decision rules: The higher the IRR, the better. Define the hurdle rate, which typically is the cost of capital. Reject if IRR is less than or equal to the hurd

The NPV and IRR methods will usually lead to the same accept or reject decisions.

ject's NPV to equal zero. Note that this formula is simply the NPV formula solved for the particular discount rate that forces the NPV to equal zero. The IRR on a project is its expected rate of return. <span>The NPV and IRR methods will usually lead to the same accept or reject decisions. Decision rules: The higher the IRR, the better. Define the hurdle rate, which typically is the cost of capital. Reject if IRR is less than or equal to the hurd

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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