Two Mutually Exclusive Projects Have the Same IRR

question 94

Multiple Choice

Two mutually exclusive projects have the same IRR.When will you be indifferent between them?

• A) When the IRR is equal to the cost of capital.
• B) Always if they have the same IRR.
• C) When the IRR is less than the cost of capital.
• D) When there is only one change in the sign of the cash flows.

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Definitions:

Situationist Critique

An argument suggesting that behavior is largely determined by situational contexts rather than fixed personality traits.

Pro-Personality Response

A theoretical approach in psychology that emphasizes enhancing and understanding individual personalities through positive reinforcement and feedback.

Variance Unexplained

The portion of the total variance in a set of data that is not accounted for by the statistical model being used to analyze the data.

Situationist Critique

This refers to the critique originating from the Situationist International, emphasizing the impact of societal structures on behavior and calling for revolutionary change to liberate human desires and creativity.