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.