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Unformatted text preview: B - Projects C and D are normal and mutually exclusive with the same WACC. Project C has a NPV of $10,000 and an IRR of 21 % a. Project C b. Project D c. Both projects C and D d. Neither project should be selected. c - When should a normal project be accepted according to the modified internal rate of return (MIRR)? a. MIRR < WACC b. Only if MIRR = WACC c. MIRR > WACC d. MIRR > IRR. D - What does the payback period ignore? a. The time value of money b. Cash flows beyond the payback period c. The cost of the project. d. Both a and b....
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This note was uploaded on 05/05/2010 for the course ECONMOICS ECON 203 taught by Professor Josephpetry during the Spring '10 term at University of Illinois, Urbana Champaign.
- Spring '10