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.

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Definitions:

Probability

A measure of the likelihood that a given event will occur, expressed as a number between 0 and 1.

Electronics Test

A procedure or set of procedures used to check the functionality, performance, and reliability of electronic components or systems.

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely.

Probability

The chance of a particular outcome occurring, often quantified as a number between 0 (impossible) and 1 (certain).