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You Are Considering Two Mutually Exclusive Projects with the Following

Question 287

Multiple Choice

You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 7 percent? What if the discount rate is 10 percent? You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 7 percent? What if the discount rate is 10 percent? A) Accept project A as it always has the higher NPV. B) Accept project B as it always has the higher NPV. C) Accept A at 7 percent and B at 10 percent. D) Accept B at 7 percent and A at 10 percent. E) Accept A at 7 percent and neither at 10 percent.


A) Accept project A as it always has the higher NPV.
B) Accept project B as it always has the higher NPV.
C) Accept A at 7 percent and B at 10 percent.
D) Accept B at 7 percent and A at 10 percent.
E) Accept A at 7 percent and neither at 10 percent.

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