Multiple Choice
The reason why the IRR criterion can give conflicting signals with mutually exclusive projects is:
A) the NPVs of these projects cross over at some discount rate.
B) discounted cash flow is not considered with mutually exclusive projects.
C) IRR performs better with accounting returns than with cash flows.
D) mutually exclusive projects have multiple IRRs
Correct Answer:
Verified
Correct Answer:
Verified
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