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When should you use incremental PI and incremental IRR? When projects are of different size. When the firm is capital rationing. When choosing between identically
When should you use incremental PI and incremental IRR? When projects are of different size. When the firm is capital rationing. When choosing between identically sized, mutually exclusive projects. If the projects are the same size, PI and IRR give decisions consistent with NPV and it is not necessary to compute Incremental PI and IRR. When there are negative future cash flows for a project.
When should you use incremental PI and incremental IRR?
When projects are of different size.
When the firm is capital rationing.
When choosing between identically sized, mutually exclusive projects.
If the projects are the same size, PI and IRR give decisions consistent with NPV and it is not necessary to compute Incremental PI and IRR.
When there are negative future cash flows for a project.
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