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When Will You Be Indifferent Between Two Mutually Exclusive Projects

Question 92

Multiple Choice

When will you be indifferent between two mutually exclusive projects of similar size?


A) When the required return on the projects is equal to the crossover discount rate
B) When the time period of the projects are equal
C) When both projects have only cash inflows following the initial cash outflow
D) When both projects have IRR's that exceed the crossover discount rate

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