Fundamentals of Corporate Finance, Student Value Edition Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition)
Fundamentals of Corporate Finance, Student Value Edition Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition)
4th Edition
ISBN: 9780134641928
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 8, Problem 8CT
Summary Introduction

Internal Rate of return: Internal rate of return is that rate at which the present value of cash inflows is similar to the present value of cash outflows and resulted net present value became zero.

Net Present Value Fundamentals of Corporate Finance, Student Value Edition Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition), Chapter 8, Problem 8CT , additional homework tip  1 Net present value refers the variance between the present value of cash flows and the present value of cash outflows.

Mutually exclusive projects: Mutually exclusive projects are the project for which the acceptance of one project leads to rejection of another one and to make the difference between these projects is difficult, as both the projects compete for each other.

To Explain: To take the Fundamentals of Corporate Finance, Student Value Edition Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition), Chapter 8, Problem 8CT , additional homework tip  2 as a base to choose between the mutually exclusive projects is a bad idea.

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