(2) Given two mutually exclusive projects and a zero cost of capital, why do the payback method and NPV method may lead to the different decision on which project to undertake? Explain.
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.(1) The IRR of a project is the interest rate that when future cashflows is discounted using this interest rate, the future cashflows....