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    NPV and IRR

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    The IRR and NPV rules always lead to identical decisions if:
    a. The project's cash flows are conventional.
    b. The projects are mutually exclusive.
    c. The projects are independent.
    d. Both (a) and (b).
    e. Both (a) and (c).

    One investment opportunity should be rejected if its NPV is ________ and its IRR is ________.
    a. Positive; Positive.
    b. Positive; Greater than the required return.
    c. Negative; Negative.
    d. Negative; Smaller than the required return.
    e. Negative; Greater than the required return.

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    https://brainmass.com/business/capital-budgeting/npv-and-irr-180298

    Solution Preview

    The IRR and NPV rules always lead to identical decisions if:
    a. The project's cash flows are conventional.
    b. The projects are mutually exclusive.
    c. The projects are independent.
    d. Both (a) and (b).
    e. ...

    Solution Summary

    Answers 2 multiple choice questions on NPV and IRR.

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