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If You Were Evaluating Two Mutually Exclusive Projects for a Firm

question 102

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.


Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often reported as a non-operating expense on the income statement.

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