Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? The reason is -Select- Reinvestment at the is the superior assumption, so when mutually exclusive projects are evaluated tI approach should be used for the capital budgeting decision. If the projects were mutually exclusive, which project(s) would be accepted according to the IRR method? Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? The reason is - -Select- Reinvestment at t Jis the superior assumption, so when mutually exclusive projects are evaluated the approach should be used for the capital budgeting decision. If the projects were mutually exclusive, which project(s) would be accepted according to the IRR method? Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive? The reason -Select- Reinvestme NPV=CF0+(1+IRR)1CF1+(1+IRR)2CF2++(1+IRR)NCFN=00=t=1N(1+IRR)tCFt discount rate that causes NPV to equal The IRR calculation assumes that cash flows are reinvested at the If the IRR is than the project's risk-adjusted cost of capital, then the project should be accepted; however, if the IRR is less than the from the NPV method. Two basic conditions can lead to conflicts between NPV and IRR: | |differences (earlier cash flows in one project vs. later cash flows in the other project) and project size (the cost of one project is larger than the other). When mutually exclusive projects are considered, then the method should be used to evaluate projects. Bellinger's WACC is 10%. What is Project A's IRR? Do not round intermediate calculations. Round your answer to two decimal places. % What is Project B's IRR? Do not round intermediate calculations. Round your answer to two decimal places. % If the projects were independent, which project(s) would be accepted according to the IRR method? If the projects were mutually exclusive, which project(s) would be accepted according to the IRR method? Could there be a conflict with project acceptance between the NPV and IRR approaches when projects are mutually exclusive