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Which of the following statements is incorrect? a. If a project's IRR greatly exceeds the firm's cost of capital, the MRR should be used. b.

Which of the following statements is incorrect?

a. If a project's IRR greatly exceeds the firm's cost of capital, the MRR should be used.

b. To evaluate projects with unequal lives, use the equivalent annual annuity (EAA).

c. Rising interest rates will lower the NPV of projects.

d. If projects are mutually exclusive, choose the combination that maximizes average IRR.

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