When Considering Two Mutually Exclusive Projects, the Firm Should Always

question 90

True/False

When considering two mutually exclusive projects, the firm should always select that project whose IRR is the highest PROVIDED THE PROJECTS HAVE THE SAME INITIAL COST. This statement is true regardless of whether the projects can be repeated or not.

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Definitions:

Bona Fide Occupational Qualification

A Bona Fide Occupational Qualification (BFOQ) is a legal term that allows employers to hire individuals based on attributes normally considered discrimination if they are reasonably necessary to the normal operation of a particular business.

Equal Employment Opportunity Commission

A federal agency in the United States charged with enforcing laws that prohibit discrimination in employment.

Protected Classes

Refers to the groups of people legally protected from discrimination and harassment in the workplace by law.

Flextime

Scheduling system that allows employees to set their own work hours within constraints specified by the firm.