(5pts) If PW(A) > PW(B) > $0, then IRR(A) > IRR(B) > MARR. Answers: True False...

Question

Question

(5pts) If PW(A) > PW(B) > $0, then IRR(A) > IRR(B) > MARR.

Answers:	True
	False

business finance

Answer 1

Answer #1

False

The selected statement is partially correct in some cases.

There are cases when PW (A) > PW(B) > $0 but IRR(A) < IRR(B) > MARR. Please find the below example of these scenario

Year Cash Flows Discount Factor@10% Discounted Cash Flows Cash Flows Discount Factor@10% Discounted Cash Flows C = 1/(1+10%)^

Answer 2

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