Flashcards in Exam 3 Deck (4)
With mutually exclusive projects, will NPV always choose the most profitable?
2 things that cause a crossover? (Causes IRR and NPV to disagree)
-timing of cash flows
With independent projects, will NPV and IRR always agree?
With mutually exclusive projects, will NPV and IRR always agree?
-NPV and IRR always agree
Mutually Exclusive Projects
-IRR will disagree with NPV(is superior to IRR)
-when different timing of cash flows
-when different sizes