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Suppose Project a Has an IRR of 10 Percent and Project

Question 50

Multiple Choice

Suppose project A has an IRR of 10 percent and project B has an IRR of 20 percent.One can then conclude that:


A) Project A is preferred to B
B) Project A has a negative NPV while project B has a positive NPV.
C) Project B has a negative NPV while project A has a positive NPV.
D) It is impossible to rank the two projects without further information.

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