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 Business Analytics
1st Edition
ISBN:9781285187273
Author:Camm, Jeff.
Publisher:Camm, Jeff.
Chapter6: Data Mining
Section: Chapter Questions
Problem 17P
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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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