What are the shortcomings of the internal rate of return criterion? How do you make an investment decision based on the IRR? How would the NPV of the same project look?

How should firms evaluate projects with different risks?

When is a project is said to be a net investment?

using a net present value (NPV) as an investment criterion , a project is acceptable if NPV is:

How is the Rate of return is an intuitively familiar and understandable measure of project?

What is the process of economically evaluating a project's desirability?

Why might recognizing the existence of a real option raise, but not lower, a project’sNPV as found in the traditional manner?

Illustrate Investment Decision for a Nonsimple Project?

Indicate whether its True or False. Then write the explanation!   The twin advantages with using the IRR method as opposed to the NPV method for project evaluation is that you don’t need to worry about what an appropriate risk- adjusted discount rate might be for the project and you will always get the correct answer to the investment decision.

Which of the following is an advantage of Net present value? a. Investment potential ignored b. Useful in evaluating mutually exclusive projects c. Considers time value of money d. Easy to calculate