When Considering Two Mutually Exclusive Projects, the Financial Manager Should

question 8

True/False

When considering two mutually exclusive projects, the financial manager should always select that project whose internal rate of return is the highest provided the projects have the same initial cost.

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Definitions:

Behaviour

The actions or reactions of a person or object in response to external or internal stimuli.

Positive Reinforcement

A technique used to encourage desired behavior by offering rewards or incentives when the behavior is demonstrated.

Approval

The act of accepting or endorsing something as meeting a required standard or condition.

Useful Comment

A constructive and beneficial observation or feedback that contributes to improvement or understanding.