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Damodar is evaluating 2 projects :- Project X IRR is 16%, RADR is 18% where as Project Y IRR is 12%, RADR is 10% . Company overall weighted average cost of capital is 14%. He should ….

April 10, 2020

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Consider following statement : 1. expected value of cash flow is equal to the arthimatic average of the cash flows . 2. In case of capityal budgeting . Higher the standard deviation better the project is. 3. in case of dependent cash flows the risk is measured with reference to joint probabilities. select correct statement

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Two mutually accepted projecta are being considered . Neither projects will be repeated again in the future after their current lives are completed . There exists a potential problem through- expected life of project 1 is I year and second is 3 yearss. this has caused NPV and IRR methods to suggest different projects preferences. what technique can be ussed to help make a better decision in this senario?

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