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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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    The NPV and IRR Methods, When Used to Evaluate Two
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The NPV and IRR Methods, When Used to Evaluate Two

Question 37

Question 37

True/False

The NPV and IRR methods, when used to evaluate two independent and equally risky projects, will lead to different accept/reject decisions and thus capital budgets if the projects' IRRs are greater than their cost of capital.

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