Question

a conflict will exist between the npv and irr methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects' cost of capital is less than the rate at which the projects' npv profiles cross. true false

Answer 1

True-No conflict will exist between the NPV and IRR methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects' cost of capital exceeds the rate at which the projects' NPV profiles cross.

What is NPV and IRR methods?

While the IRR approach calculates the projected percentage return, the NPV method produces the predicted dollar worth of a project.

Purpose. The breakeven cash flow level of a project is the emphasis of the IRR approach while project surpluses are the subject of the NPV method.

assistance with decisions. Since it provides a dollar return, the NPV approach delivers an outcome that serves as the basis for an investment decision. The IRR approach is not helpful in making this choice because its percentage return does not indicate to the investor how much money will be produced.

Reinvestment rate. When NPV is utilized, the firm's cost of capital is the assumed rate of return for reinvesting intermediate cash flows; when it is the internal rate of return.

To learn more about NPV and IRR methods from the given link:

brainly.com/question/21241533

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