When Considering Two Mutually Exclusive Projects, the Firm Should Always

question 27

True/False

When considering two mutually exclusive projects, the firm should always select the project whose internal rate of return is the highest, provided the projects have the same initial cost.This statement is true regardless of whether the projects can be repeated or not.

---

Definitions:

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, particularly experiments with dogs.

Salivated

The secretion of saliva from the salivary glands, usually in response to the presence or anticipation of food.

Polyandrous

A mating system where a female has multiple male partners.