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Why if two mutually exclusive projects are being compared

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Problem 1: Explain why, if two mutually exclusive projects are being compared, the shorter-term project might be ranked higher under the NPV criterion if the cost of capital is high, but the long-term project might be deemed better if the cost of capital is low. Would changes in the cost of capital ever cause a change in the IRR ranking of two such projects?

Reference no: EM132960903

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