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If an independent project with conventional, or normal, cash flows is being analyzed, the net present value (NPV) and internal rate of return (IRR) methods

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If an independent project with conventional, or normal, cash flows is being analyzed, the net present value (NPV) and internal rate of return (IRR) methods agree. always never sometimes Projects Y and Z are mutually exclusive p h flows and NPV profiles are shown as follows NPV (Dollars) Year Project Y Project Z $1,500-$1,500 $900 $600 $300 $200 800 0 $200 $400 $600 $1,000 600 Project Y 3 400 4 Project Z 200 If the weighted average cost of capital (WACC) for each project is 2%, do the NPV and IRR methods agree or conflict? -200 0 2 4 6 810 12 14 16 18 20 O The methods agree. O The methods conflict. COST OF CAPITAL (Percent

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