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b Consider two projects X and Y with the following characteristics: e IRR(X) = 11%; IRR(Y) 12.5%; The initial costs of the projects are the
b 
Consider two projects X and Y with the following characteristics: e IRR(X) = 11%; IRR(Y) 12.5%; The initial costs of the projects are the same. There is a crossover between the NPV profiles at 6.7%. Cash flows are normal. Which of the followings is correct? Only if WACC > 6.7%, then it is ok to use the NPV method. o Only if WACC 6.7%, then it is ok to use the IRR method. Only if WACC
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Contemporary Issues In Behavioral Finance
Authors: Simon Grima
1st Edition
1787698823, 978-1787698826
