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if the weighted average cost of capital for each project is 10%, do the NPV and IRR methods agree or conflict? ------------------------ Projects W and

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if the weighted average cost of capital for each project is 10%, do the NPV and IRR methods agree or conflict?

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Projects W and X are mutually exclusive projects. Their cash flows and NPV profiles are shown as follows. NPV (Dollars) Year Project W Project X 800 $1,000 $1,500 $200 $350 600 Project X $500 $350 $400 $600 400 $600 $750 Project W 200 If the weighted average cost of capital (WACC) for each project is 10%, do the NPV and IRR methods agree or conflict? 200 2 4 6 8 10 12 14 16 18 20 O The methods conflict. COST OF CAPITAL (Percent) O The methods agree

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