Statement regarding npv


Which of the following statements is true?

A) NPV should never be used if the project under consideration has nonconventional cash flows.

B) NPV is similar to a cost/benefit ratio.

C) If the financial manager relies on NPV in making capital budgeting decisions, she acts in the shareholders' best interests.

D) NPV can normally be directly observed in the marketplace.

E) IRR is generally preferred to NPV in making correct capital budgeting acceptance decisions.

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