Multiple Choice
Ranking conflicts can arise if one relies on IRR instead of NPV when:
A) The first cash flow is negative and the remaining cash flows are positive.
B) Projects are independent of one another.
C) A project has more than one NPV.
D) Projects are mutually exclusive.
E) The profitability index is greater than one.
Correct Answer:
Verified
Correct Answer:
Verified
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