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You Are Considering Two Independent Projects Both of Which Have

Question 314

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You are considering two independent projects both of which have been assigned a discount rate of 9 %. Based on the profitability index, what is your recommendation concerning these projects? You are considering two independent projects both of which have been assigned a discount rate of 9 %. Based on the profitability index, what is your recommendation concerning these projects?    A)  You should accept both projects. B)  You should reject both projects. C)  You should accept project A and reject project B. D)  You should accept project B and reject project A. E)  You should accept project A and be indifferent to project B.


A) You should accept both projects.
B) You should reject both projects.
C) You should accept project A and reject project B.
D) You should accept project B and reject project A.
E) You should accept project A and be indifferent to project B.

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