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For Conventional Projects, Both NPV and IRR Techniques Will Always

question 67

True/False

For conventional projects, both NPV and IRR techniques will always generate the same accept-reject decision, but differences in their underlying assumptions can cause them to rank mutually exclusive projects differently.

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Definitions:

Standard Deduction

A fixed dollar amount that reduces the income that is subject to tax and varies according to the taxpayer's filing status.

Taxable Income

The portion of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

AMTI

Alternative Minimum Taxable Income; an income calculation used to ensure that high-income earners pay a minimum amount of tax.

Exemption Amount

The portion of an individual's income that is not subject to tax, as determined by tax laws.

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