Vidyalelo
Commerce · Q75

Business Finance

Graduate and Post Graduate · Commerce · question 75

Q75

Assertion (A): When two or more investment proposals are mutually exclusive, ranking the proposals on the basis of IRR, NPV and PI methods may give contradictory results. Reason (R): The contradictory results in the ranking are due to differing dimensions relating to the sacle of investments, cash flow patterns and project lives.

A.
Both (A) and (R) are true
B.
(A) is true, but (R) is a necessary condition, but not a sufficient condition
Answer
C.
Both (A) and (R) are false
D.
Both (A) and (R) are true and (R) is the correct explanation of (A)

Answer: Option B

Solution

Answer: Option B
No explanation is given for this question Let's Discuss on Board