Final answer:
The statement that NPV and IRR methods always agree on which projects should be undertaken is false. They use different approaches to assess project profitability and can yield different results, especially under certain circumstances like non-conventional cash flows or different project scales.
Step-by-step explanation:
The statement that the net present value (NPV) and internal rate of return (IRR) methods will always agree on which projects should be undertaken is False. While both NPV and IRR are methods used in capital budgeting to assess the profitability of investments or projects, they do not always agree. NPV calculates the value of a project in terms of today's dollars, providing the difference between the present value of cash inflows and outflows. IRR, on the other hand, is the discount rate at which the NPV of all cash flows from a particular project is equal to zero. Discrepancies between NPV and IRR can arise, particularly with non-conventional cash flows or projects with different scales and timing of cash flows. The NPV method is generally considered more reliable, especially when there is a variance in the cost of capital or when comparing projects of different sizes.