Question: 4 . Unlike using IRR, selecting projects according to their NPV will always lead to a correct acceptreject decision. 5 . The payback period considers
Unlike using IRR, selecting projects according to their NPV will always lead to a correct acceptreject decision. The payback period considers all project cash flows. If a project has multiple IRRs, we use the highest IRR when applying the IRR rule for single projects.
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