Question: True or False and why? 3. An increase in the weighted average cost of capital will result in an increase in a projects internal rate

True or False and why?

3. An increase in the weighted average cost of capital will result in an increase in a projects internal rate of return, assuming all other conditions hold constant.

4. Conflicts between two independent projects occasionally occur, where the NPV method ranks one project higher but the IRR method puts the other one first. In theory, such conflicts should be resolved in favor of the project with the higher NPV.

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