You Are Comparing Two Mutually Exclusive Projects

Multiple Choice

You are comparing two mutually exclusive projects. The crossover point is 12.3 percent. You have determined that you should accept project A if the required return is 13.1 percent. This implies you should: 

A) always accept Project A. 
B) be indifferent to the projects at any discount rate above 13.1 percent. 
C) always accept Project A if the required return exceeds the crossover rate. 
D) accept Project B only when the required return is equal to the crossover rate. 
E) accept Project B if the required return is less than 13.1 percent.