Thursday, 21 February 2013

What is the difference between NPV and IRR? | Agile Testing mcqs

A.    There is not difference.
B.    IRR is a measure of how much money a project can be expected to return in  today’s present value, whereas NPV is a measure of how quickly the money invested in the project will increase in value.
C.    NPV is a measure of how much money a project can be expected to return in  future value, and IRR is a measure of how quickly the money invested in the project will decrease in value.
D.    NPV is a measure of how much money a project can be expected to return in o today’s present value, whereas IRR is a measure of how quickly the money invested in the project will increase in value.

Ans: D


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