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1. Which of the following statements is most correct?
a. The IRR method is correct under all circumstances when comparing mutually exclusive projects.
b. The discounted payback method solves all the problems associated with the payback method.
c. For independent projects, the decision to accept or reject will always be the same using either the MIRR method or the NPV method.
d. All of the statements above are correct.
2. If project A has an NPV of 15,000 and an IRR of 12% and Project B has an NPV of 10,000 and an IRR of 20%, an investor making a mutually exclusive decision would choose which of the projects?
a. Project A
b. Project B
c. Both projects
d. Neither project
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