Identify any considerations with the irr methodology

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Reference no: EM132470411 , Length: word count :- 500

Project AlphaProject BetaNPV$34,670$1,500IRR (required rate of return is 10%)12.4%10.6%Payback Period6 years2 years

Question 1: If the projects are mutually exclusive, is there a clear best option to which project should be undertaken? Why or why not?

Question 2: Which option is the financial manager likely to choose? Why?

Question 3: Under what circumstances would the other project be undertaken?

Question 4: Identify at least two circumstance in which the other project may be undertaken, and identify any considerations with the IRR methodology compared to the NPV methodology.

  • Your document should be between 350-500 words and please add references.

Reference no: EM132470411

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