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Mutually exclusive projects are those refer to a sect of projects out of which only one project can be selected for investment. • When the size of projects is different, the NPV and IRR method would give conflicting results as NPV being an absolute amount would give higher return for a higher size project while IRR being relative would give a lower % return for a larger size project • In case of difference in timing of cash inflows, the NPV and IRR give conflicting results due to reinvestment rate assumption. NPV assumes that intermediate cash inflows are reinvested at discount rate while IRR assumes that they are reinvested at the IRR rate itself. • Difference in the economic life of the projects also give contradictory results under NPV and IRR. • The purpose of the project is a subjective aspect and does not concern with NPV
How do you typically respond to failure or setbacks?
How important is it for you to have a sense of control?
How important is it to you to be acknowledged and complimented for your efforts?
How do you typically handle conflicts within your personal relationships?
How likely are you to forgive someone who has hurt you deeply, even if they do not apologize?
How important is it for you to have control over your environment?
How important is it for you to have a strong sense of identity or self-concept?
How often do you find yourself worrying about the future or things you cannot control?
Are you more of a logical or emotional person?
How do you deal with difficult people or situations?
