"If a firm has no mutually exclusive projects, only independent ones, and it also has both a constant cost of capital and projects with normal cash flows in the sense that each project has one or more outflows followed by a stream of inflows, then the XPY 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 XPV method? If each of the assumptions made in the question were changed (one by one), how would these changes affect your answer?

AppendixLO1