Two mutually exclusive projects have the same IRR. When will you be indifferent between them? Multiple...
Two mutually exclusive projects have the same IRR. When will you be indifferent between them?
Multiple Choice
A. When the IRR is equal to the cost of capital.
B. Always if they have the same IRR.
C. When the IRR is less than the cost of capital.
D. When there is only one change in the sign of the cash flows.
Homework Answers
Answer: Option A is correct
A project should be accepted if IRR > cost of capital
A project should be rejected if IRR < cost of capital
Indifferent between two projects if IRR = cost of capital
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Two mutually exclusive projects have the same IRR. When will you
be indifferent between them?
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