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If You Were Evaluating Two Mutually Exclusive Projects for a Firm

question 102

True/False

If you were evaluating two mutually exclusive projects for a firm with a zero cost of capital, the payback method and NPV method would always lead to the same decision on which project to undertake.


Definitions:

Consumers

Individuals or organizations that use goods and services generated within the economy.

Producers

Individuals or entities that create goods or services for sale or exchange in a market.

Trade

The exchange of goods and services between parties.

Imports

Goods or services brought into one country from another for the purpose of sale.

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