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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Sept/Dec 2018 Qn 31
Hi
In Sept/Dec 2018 exam question 31, the examiner asked the superiority of NPV over IRR. One of the points he made was NPV is superior when considering mutual exclusive projects than IRR because of its re-investment assumption.
My question, what if I say that NPV is superior than IRR because its an absolute measure and not a relative measure when considering mutual exclusive projects, will it still be correct ?
Yes, it would be correct and would get the marks 🙂
Thank you
You are very welcome 🙂