The IRR of Normal Project X Is Greater Than the IRR

question 47

True/False

The IRR of normal Project X is greater than the IRR of normal Project Y, and both IRRs are greater than zero.Also, the NPV of X is greater than the NPV of Y at the cost of capital.If the two projects are mutually exclusive, Project X should definitely be selected, and the investment made, provided we have confidence in the data.Put another way, it is impossible to draw NPV profiles that would suggest not accepting Project X.

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Definitions:

Anterior Side

The front or forward-facing side of the body or an anatomical structure, opposite of the posterior.

Scapula

A triangular-shaped bone that makes up part of the shoulder blade, serving as an anchor for several muscles.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone; known commonly as the collarbone.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow, connecting with several muscles and joints.