- 原文是这么写的：When reviewing her work, Simpson’s supervisor provides the following comments. “I note that you are relying heavily on the NPV approach to valuing the investment decision. I don’t think you should use an IRR because of the multiple IRR problem that is likely to arise with the Bayonne Pharma project. However, the equivalent annual annuity would be a more appropriate measure to use for the project than the NPV. I suggest that you compute an EAA.”
- 答案这么写的：32 A is correct. Both of the supervisor’s comments are incorrect. Because the Bayonne Pharma project is a conventional project (an outflow followed by inflows), the multiple IRR problem cannot occur. The EAA is preferred over the NPV when dealing with mutually exclusive projects with differing lives, a scenario which is not relevant for this decision. The Bayonne Pharma project is free-standing, so the NPV approach is appropriate.
- 我的疑问是：
- multiple IRR problem是什么时候出现的？
- free-standing 是指什么样特征的项目？NPV为什么会更适用于这个项目？谢谢！
