“The IRR rule is redundant as an investment criterion because the net present value (NPV) rule always dominates it.” Discuss this statement giving examples where possible.

(a) Prepare the case, with recommendations, to be presented to the Board of Directors of BCG. You should assess the viability of the proposed project using the NPV, IRR and payback methods. (60 marks)

(b) “The IRR rule is redundant as an investment criterion because the net present value (NPV) rule always dominates it.” Discuss this statement giving examples where possible. (40 marks)

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