If You Were Evaluating Two Mutually Exclusive Projects for a Firm

question 98

True/False

If you were evaluating two mutually exclusive projects for a firm with a zero cost of capital, the payback method and NPV method would always lead to the same decision on which project to undertake.

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Definitions:

Implementation

The act of putting a plan, system, or policy into effect.

Define

To explain the meaning of a term or concept clearly and accurately.

Professional

Pertaining to a person engaged in a specified activity as their main paid occupation rather than as an amateur.

Altruism

The selfless concern for the well-being of others, often resulting in acts of kindness without expectation of reciprocation.