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 8.5 percent? What if the discount rate is 13 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 8.5 percent and B at 13 percent
D) accept B at 8.5 percent and A at 13 percent
E) accept B at 8.5 percent and neither at 13 percent
Correct Answer:
Verified
Correct Answer:
Verified
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