Q564
Assertion (a): When two or more investment proposals are mutually exclusive, ranking the proposals on the basis of IRR, NPV and PI methods may givecontradictory results. Reason (R): The contradictory results in the ranking are due to differing dimensions relating to the scale of investments, cash flow patterns and project lives. Indicate the correct answer:
A.
Both (A) and (R) are true
B.
(A) is true, but (R) is a necessary condition, but not a sufficient condition
AnswerC.
Both (A) and (R) are false
D.
Both (A) and (R) are true and (R) explains the reason sufficiently
Answer: Option B
Solution
Answer: Option B
No explanation is given for this question Let's Discuss on Board