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    Exam 10: The basics of capital budgeting: evaluating cash flows
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    The Primary Reason That the NPV Method Is Conceptually Superior
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The Primary Reason That the NPV Method Is Conceptually Superior

Question 3

Question 3

True/False

The primary reason that the NPV method is conceptually superior to the IRR method for evaluating mutually exclusive investments is that multiple IRRs may exist, and when that happens, we don't know which IRR is relevant.

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