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    Capital Budgeting: Mutually Exclusive, Independent

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    How do mutually exclusive projects compare to independent projects? Can NPV and IRR give conflicting results on occasion? Provide an example to illustrate.

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    https://brainmass.com/business/net-present-value/capital-budgeting-mutually-exclusive-independent-596005

    Solution Summary

    This solution answers questions regarding when NPV and IRR rules will be in conflict regarding selection of projects. Use the concept of NPV profile and crossover rate to illustrate the point.

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