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If Two Projects Are Mutually Exclusive,then the IRR Is More

question 109

True/False

If two projects are mutually exclusive,then the IRR is more important than the NPV in deciding the project that should be chosen.


Definitions:

Financing Activity

Transactions and events that affect long-term liabilities and equity of an entity, such as issuing shares or obtaining long-term loans.

Total Equity

The total net worth of a company, calculated as total assets minus total liabilities.

Total Debt Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its total assets.

Total Assets

Refers to the sum of everything of value owned by a business, including cash, securities, receivables, inventories, and fixed assets.

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