16. Some people believe firmly, even passionately, that ranking projects on IRR is OK if each projects

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16. Some people believe firmly, even passionately, that ranking projects on IRR is OK if each project’s cash flows can be reinvested at the project’s IRR. They also say that the NPV rule

“assumes that cash flows are reinvested at the opportunity cost of capital.” Think carefully about these statements. Are they true? Are they helpful?

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Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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