Question: If a firm has no mutually exclusive projects, only independent ones, and it also has both a constant required rate of return and projects with

“If a firm has no mutually exclusive projects, only independent ones, and it also has both a constant required rate of return and projects with conventional cash flow patterns, then the NPV and IRR methods will always lead to identical capital budgeting decisions.” Discuss this statement. What does it imply about using the IRR method in lieu of the NPV method? If the projects are mutually exclusive, would your answer be the same?

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