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According to class discussions and your book, when might different discounted cash flow evaluation methods (IRR, PI, and NPV) provide conflicting rankings of investment projects?

  1. According to class discussions and your book, when might different discounted cash flow evaluation methods (IRR, PI, and NPV) provide conflicting rankings of investment projects? How do you choose a project when a conflict of ranking exists?
  2. How do taxes affect the firms weighted average cost of capital? Why is it important that the firm calculate their weighted average cost of capital as accurately as possible?

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