When the NPV and IRR rules produce conflicting investment decisions, then the:

A) NPV rule is superior.
B) IRR rule is superior.
C) firm should be indifferent between the IRR rule and NPV rule.
D) payback period rule should be used.
E) a and d

Conflicting Investment

Investments that present opposing outcomes or decisions in a portfolio, often leading to a prioritization decision for optimal allocation.

NPV Rule

A principle stating that an investment should be made if its net present value is positive, as it's expected to add value to the firm.

IRR Rule

A decision-making tool used in finance to evaluate investments, stating that a project is acceptable if its internal rate of return exceeds a predetermined threshold.