Econ 3810 M Final York University 16th August 2016 Instructions This Exam Contai

– t space and interpret itís meaning.

b. On your graph show the optimal investment time under the NPV criterion c. Show the same for the IRR criterion d. In general when do you prefer IRR over NPV ?

Q5. information in attachment.

a.What real world feature makes (iii) a better criterion than (i) or (ii) ? b. If there is no consumption which criterion would you use ? c. What are the potential problems with all three criteria ?