Question: 1. What is the problem with using the Internal Rate of Return capital budgeting method when deciding between two mutually exclusive projects? Discuss and illustrate

1. What is the problem with using the Internal Rate of Return capital budgeting method when deciding between two mutually exclusive projects? Discuss and illustrate your explanation with a graph. [10 marks] 2. Discuss the life cycle model of savings and the related inter-temporal budget constraint formula. [10 marks]

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