Which of the following statements is incorrect? Pursuing projects with the highest IRRs will always maximize...
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Which of the following statements is incorrect? Pursuing projects with the highest IRRs will always maximize total NPV for the firm. If the firm's cost of capital exceeds the IRR, then the project not be pursued. A project's IRR is the discount rate that sets the project's NPV equal to zero. The IRR calculation for a project assumes all interim cash flows can be re- invested at a rate of return equal to the IRR. Which of the following statements is incorrect? Pursuing projects with the highest IRRs will always maximize total NPV for the firm. If the firm's cost of capital exceeds the IRR, then the project not be pursued. A project's IRR is the discount rate that sets the project's NPV equal to zero. The IRR calculation for a project assumes all interim cash flows can be re- invested at a rate of return equal to the IRR.
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