There is sometimes a ranking problem among npv and irr when


1. There is sometimes a ranking problem among NPV and IRR when selecting among mutually exclusive investments. This ranking problem only occurs when

a. the NPV is greater than the crossover point.

b. the NPV is less than the crossover point.

c. the cost of capital is to the right of the crossover point.

d. the cost of capital is to the left of the crossover point.

2. The objective of ________ is to select the group of projects that provides the highest overall net present value and does not require more dollars than are budgeted.

a. capital rationing

b. scenario analysis

c. certainty equivalents

d. sensitivity analysis

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Financial Management: There is sometimes a ranking problem among npv and irr when
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