Resolving ranking conflict

Describe how to resolve a "ranking conflict" among the net present value and the internal rate of return. Why should the conflict be resolved as you described?
Whenever there is a ranking conflict among net present value and internal rate of return generally we suggest that the project along with the highest net present value be selected. It is because the net present value method ties more directly with the primary financial goal of the firm, to maximize firm value.

View Complete Question

Related Questions in Finance Basics

Q : Define the term year of Completion Year

Year of Completion (YOC): This is the last fiscal year for which the appropriation is accessible for encumbrance or expenditure.

Q : Describe financial ratio Describe

Describe financial ratio? This is a number which expresses the value of one financial variable relative to another. Put more cleanly, a financial ratio is the result you obtain when you divide one financial number by another. Computing an

Q : Law of rising opportunity costs Normal

Normal 0 false false

Q : Explain Year of Budget Year of Budget

Year of Budget (YOB): In this the fiscal year revenues and expenses are recognized. For revenues, this is usually the fiscal year whenever revenues are earned. For expenses, this is usually the fiscal year whenever obligations, compri

Q : In which ratios long-term bond investor

Which ratios would a potential long-term bond investor is most interested in? Describe. Current & potential lenders of long-term funds, such like banks & bondholders, are interested in debt ratios. While a business's debt ratios ri

Q : Question on budget line On a Lotto

On a Lotto Canada ticket A person won $15 at the local 7-Eleven & decided to spend all the winnings money on bags of peanuts and candy bars. The cost of candy bars= $.75 and the cost of peanuts = $1.50. a. In general, how woul

Q : Define the term Surplus Define the term

Define the term Surplus: It is an outdated term for a fund’s excess of assets (or resources) over liabilities.

Q : What is State Operations State

State Operations (SO): It is a character of expenditure symbolizing expenditures for the support of state government, exclusive of capital investments and expenses for the local assistance actions.

Q : What is an Initiative Initiative : The

Initiative: The power of electors to propose statutes or Constitutional amendments and to accept or reject them. An initiative should be limited to a single subject and be filed with the Secretary of State with the suitable number of voter signatures

Q : Making capital structure decisions In a

In a perfect capital market, what advice would you give a corporate financial manager on making capital structure decisions? Justify your advice. How and why would your advice change as real world capital market imperfections are introduced?

Discover Q & A

Leading Solution Library

Avail More Than 1413764 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1931939
Asked

3,689

Active Tutors

1413764

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment