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Which of the following statements regarding capital budgeting criteria is INCORRECT?

A. The net present value profile shows how the NPV of an investment is affected by the discount rate.

B. When the selection of one project eliminates the option of selecting the other project, the two projects are called mutually exclusive.

C. The net present value rule is generally considered to be the best capital budgeting rule.

D. The net present value is positive when the required return exceeds the internal rate of return.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91376161

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