Quiz Ch 11 – T/F Differential Capital Budgeting Outcomes: NPV vs. IRR for Equally Risky Mutually Exclusive Projects
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: The NPV and IRR methods, employed to appraise two mutually exclusive projects of equal risk, can yield discrepant accept/reject conclusions and, consequently, divergent capital budgets if the cost of capital at which the projects’ NPV profiles intersect exceeds the crossover rate.