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Memphic Memphic
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6 years ago
Consider two mutually exclusive projects A & B.  If you subtract the cash flows of opportunity B from the cash flows of opportunity A, then you should:
A) take opportunity A if the regular IRR exceeds the cost of capital.
B) take opportunity A if the incremental IRR exceeds the cost of capital.
C) take opportunity B if the regular IRR exceeds the cost of capital.
D) take opportunity B if the incremental IRR exceeds the cost of capital.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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6 years ago
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