Question: Practice Question 9 IRR is unsuitable for choosing between mutually exclusive projects because: O A project with a high IRR may have a low NPV.

Practice Question 9 IRR is unsuitable for choosing between mutually exclusive

Practice Question 9 IRR is unsuitable for choosing between mutually exclusive projects because: O A project with a high IRR may have a low NPV. IRR is not widely used in the private sector and hence very limited knowledge has been developed about its use in more complex situations, such as when considering mutually exclusive projects. O This statement is false, IRR is the more appropriate technique for evaluating mutually exclusive projects. O IRR assumes all cash flows are reinvested at the risk free rate

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