Look at your npv profile graph without referring to

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2. Look at your NPV profile graph without referring to the actual NPVs and IRRs. Which franchise or franchises should be accepted if they are independent? Mutually exclusive? Explain. Are your answers correct at any cost of capital less than 23.6 percent?
f. 1. What is the underlying cause of ranking conflicts between NPV and IRR?
f. 2. What is the "reinvestment rate assumption”, and how does it affect the NPV versus IRR conflict?
Mini Case: 11 - 36 f.

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