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Problem with valuing mutually exclusive projects using DCF

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Why might the existence of mutually exclusive projects cause problems in the implementation of the discounted cash flow capital-budgeting criteria?

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Existence of mutually exclusive projects can cause problems in the implementation of the discounted cash flow capital-budgeting criteria. This is because if the capital is constrained, one may not pick the biggest NPV project. This is because the biggest NPV project may require an initial cash ...

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