Question
Which of the following statements is not correct? a. In comparing two mutually exclusive projects, the NPV method and the incremental NPV method lead to
Which of the following statements is not correct? a. In comparing two mutually exclusive projects, the NPV method and the incremental NPV method lead to the different conclusion. b. The NPV profile illustrates how the net present value of an investment is affected by discound rate. c. The internal rate of return is the discount rate that results in a zero net present value for the project. d. At a crossover point, the NPVs of two projects should be the same. e. The profitability index can be defined as a benefit-cost ratio.
Please also explain why the options are right and wrong for each option.
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