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A Firm with a Cost of Capital of 13 Percent

Question 162

Multiple Choice

A firm with a cost of capital of 13 percent is evaluating three capital projects. The internal rates of return are as follows: A firm with a cost of capital of 13 percent is evaluating three capital projects. The internal rates of return are as follows: The firm should ________. A) accept Project 1 and 2, and reject Project 3 B) accept Project 2, and reject Projects 1 and 3 C) accept Project 1, and reject Projects 2 and 3 D) accept Project 3, and reject Projects 1 and 2 The firm should ________.


A) accept Project 1 and 2, and reject Project 3
B) accept Project 2, and reject Projects 1 and 3
C) accept Project 1, and reject Projects 2 and 3
D) accept Project 3, and reject Projects 1 and 2

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