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 ?
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Sept/Dec 2018 Qn 31
5y ago#1Yes, it would be correct and would get the marks :-)
Thank you
5y ago#3You are very welcome :-)
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