Question: Why is using NPV an issue when evaluating mutually exclusive projects? When projects have different economic lives, NPV can result in an incorrect accept/reject decision.

Why is using NPV an issue when evaluating mutually exclusive projects? When projects have different economic lives, NPV can result in an incorrect accept/reject decision. IRR is a superior method, and NPV can contradict the IRR decision. NPV can be difficult to understand There is no issue with NPV; it is a superior decision method

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