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Which one of the following statement is incorrect? a. If projects are of a different scale, the IRR rule may give an incorrect ranking and
Which one of the following statement is incorrect?
a. If projects are of a different scale, the IRR rule may give an incorrect ranking and result in selection of a project with a lower NPV.
b. NPV profile shows the NPV for different values of the cost of capital.
c. If there are negative cash flows after the first positive cash flows from a project, it is impossible for there to be multiple internal rates of return. d. NPV profile is useful if there is some doubt as to the true cost of capital.
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