Quiz Ch 11 – T/F Conflicting Outcomes in Capital Budgeting: NPV vs. IRR for Equally Risky Mutually Exclusive Projects

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: A conflict arises between the NPV and IRR methods when assessing two mutually exclusive projects of equal risk if the projects' cost of capital is lower than the rate at which their NPV profiles intersect.

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