questions are in the photos

If projects are mutually exclusive, only one project can be chosen. The internal rate of return (IRR) and the net present value (NPV) methods will not always choose the same project. If the crossover rate on the NPV profile is below the horizontal axis, the methods will agree. Projects W and X are mutually excluslve projects. Their cash flows and NPV profiles are shown as follows. If the weighted average cost of capital (WACC) for each project is 10%, do the NPV and IRR methods agree or conflict? The methods agree. The methods confict. When there is a conflict, a key to resolving this it is the assumed reinvestment rate. The NPV calculation implicitly assumes that intermediate cash flows are reinvested at the , and the IRR calculation assumes that the rate at which cash flows can be reinvested is the If the weighted average cost of capital (WACC) for each project is 10%, do the NPV and IRR methods agree or conflict? The methods agr The methods con When there is a conflict, a restment rate. The NPV calculation implicitly assumes that intermediate cash flows are reinvested at the and the IRR calculation assumes that the rate at which cash flows can be reinvested is the As a result, when evaluating mutually exclusive projects, the is usually the better decision criterion. When there is a conflict, a key to resolving this it is the assumed reinvestment rate. The NPV calculation implicitly assumes that intermedia flows are reinvested at the and the IRR calculation assumes that the rate at which cash f be reinvested is the As a result, when evaluating mutually exclusive projects, the is usually the better decision criterion