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Which of the following statements is CORRECT? Assume all projects considered have normal cash flows. A ) The NPV profile graph for a normal project
Which of the following statements is CORRECT? Assume all projects considered have normal cash flows.
A The NPV profile graph for a normal project will generally have a positive upward slope as the life of the project decreases.
B If a project has higher IRR, it means that this project has a steeper PV profile curve.
C If two projects have a nonnegative crossover rate, then it means that there will always be conflicts between the NPV rule and the IRR rule for mutually exclusive projects, regardless of the cost of capital.
D We cannot draw a project's PV profile unless we know the appropriate cost
of capital for use in evaluating the project's PV
E None of the above
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