For mutually exclusive projects, the internal rate of return and the net present value give consistent accept/reject decisions if: A.the investment projects have identical cash flows in the final year. B.the required rate of return is less than the discount rate, which causes the net present value profiles of the two projects to intersect. C.the net present value profiles for both projects do not intersect. D.the investment projects have equal lives.
For mutually exclusive projects, the internal rate of return and the net present value give consistent accept/reject decisions if: A.the investment projects have identical cash flows in the final year. B.the required rate of return is less than the discount rate, which causes the net present value profiles of the two projects to intersect. C.the net present value profiles for both projects do not intersect. D.the investment projects have equal lives.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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For mutually exclusive projects, the internal rate of return and the net present value give consistent accept/reject decisions if:
A.the investment projects have identical cash flows in the final year.
B.the required rate of return is less than the discount rate, which causes the net present value profiles of the two projects to intersect.
C.the net present value profiles for both projects do not intersect.
D.the investment projects have equal lives.
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