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Suppose Projects X and Y are mutually exclusive. Project X has an IRR of 10 percent and project Y has an IRR of 20 percent.
- Suppose Projects X and Y are mutually exclusive. Project X has an IRR of 10 percent and project Y has an IRR of 20 percent. What can you conclude?
One can conclude that:
- Project X must always be preferred to Y
- Project X has negative NPV while project Y has positive NPV
- Project Y must always be preferred to X
- We cant rank the two projects without further information
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
IFRS 3rd edition
1118978080, 978-1119153726, 1119153727, 978-1119153702, 978-1118978085
