Question
If a project has _________ IRR(s), we should __________ . Assume this project is competing with other projects that the firm is evaluating. 1. multiple,
If a project has _________ IRR(s), we should __________ . Assume this project is competing with other projects that the firm is evaluating.
1. multiple, we should not rely on the IRR criterion.
2. multiple, assume that the lowest IRR is correct.
3. a single; accept the project any time IRR > WACC
4. multiple, assume that the average of the IRRs is a reasonable estimate. 5. multiple, assume that the highest IRR is correct.
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
