16.

When comparing two mutually exclusive projects of equal life, the capital budgeting evaluation technique that ALWAYS identifies the BEST project is:

Question 16 options:

NPV

IRR

Profitability Index

All three of the techniques listed above will always give the same answer, therefore no one technique is better than any of the others for mutually exclusive projects.

None of the answers listed above is correct.

15.

Which of the following statements is most correct?

Question 15 options:

	The constant growth model takes into consideration the capital gains earned on a stock.
	It is appropriate to use the constant growth model to estimate stock value even if the growth rate never becomes constant.
	Two firms with the same dividend and growth rate must also have the same stock price.
	Statements a and c are correct.
	All of the statements above are correct.