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Your firm will relocate one of its plants to either location A or B . The capital budgeting team has analyzed each choice on the
Your firm will relocate one of its plants to either location A or B The capital budgeting team has analyzed each choice on the basis of revenue and cost estimates, and has recommended location A because the NPV is higher, despite the fact that B has the higher IRR of the two. The CFO is reviewing the work.
True of False: The CFO should reject the recommendation the capital budgeting team has made.
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