单选题 The internal rate of return (IRR) method and net present value (NPV) method of project selection will always provide the same accept or reject decision when: A. the projects are mutually exclusive. B. the projects are independent. C. the projects terminate within five years.

【正确答案】 B

【答案解析】If a project's IRR exceeds the cost of capital, the project's NPV will be positive. The only way in which accepting a positive NPV project would reduce firm value is if its selection precludes selection of a project that would have enhanced firm value to a greater extent (i. e. , had a higher NPV). IRR and NPV method accuracy do not depend upon project duration or costs.