When two mutually exclusive projects are being compared

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When two mutually exclusive projects are being compared, explain why the short-term project might be ranked higher under the NPV criterion if the cost of capital is high whereas 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 if two such projects? Why or why not?

Reference no: EM131316286

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