Internal rate of return method shows how many years take to


1. (TRUE or FALSE?) If projects A & B are mutually exclusive and their NPVs are less than zero, accept both projects.

2. (TRUE or FALSE?) Internal rate of return method shows how many years take to recoup the initial investment.

3. (TRUE or FALSE?) Any time you consider investing in a project, you will not actually receive the IRR unless you can reinvest the project’s intervening cash flows at the IRR.

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Financial Management: Internal rate of return method shows how many years take to
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