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    Corporate Finance
  4. Exam
    Exam 10: The basics of capital budgeting: evaluating cash flows
  5. Question
    If the IRR of Normal Project X Is Greater Than
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If the IRR of Normal Project X Is Greater Than

Question 2

Question 2

True/False

If the IRR of normal Project X is greater than the IRR of mutually exclusive (and also normal)Project Y, we can conclude that the firm should always select X rather than Y if X has NPV > 0.

Correct Answer:

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