1) For mutually exclusive projects, explain why picking one project over another because of it having a larger IRR can lead to mistakes. Your answer should include all aspects of the limitations of IRR. For mutually exclusive projects, explain why picking one project over another because of it having a larger IRR can lead to mistakes. Your answer should include all aspects of the limitations of IRR.
2) Why would a firm not use its weighted average cost of capital (WACC) to evaluate all proposed investments? Your answer should include all aspects of the limitations of WACC.
Detailed answer.