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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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Production And Operations Analysis
Authors: Steven Nahmias, Tava Lennon Olsen
7th Edition
1478623063, 9781478623069
