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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Finance For Non Financial Managers
Authors: Pierre Bergeron
6th Edition
0176501630, 9780176501631
