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    Financial Management Theory and Practice Study Set 4
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    Exam 10: The Basics of Capital Budgeting: Evaluating Cash Flows
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    Conflicts Between Two Mutually Exclusive Projects Occasionally Occur, Where the NPV
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Conflicts Between Two Mutually Exclusive Projects Occasionally Occur, Where the NPV

Question 2

Question 2

True/False

Conflicts between two mutually exclusive projects occasionally occur, where the NPV method ranks one project higher but the IRR method ranks the other one first.In theory, such conflicts should be resolved in favor of the project with the higher positive IRR.

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