Question: Blue Space X is comparing two mutually exclusive projects A and B. The crossover point is 10% percent. Blue Space X has determined that they
Blue Space X is comparing two mutually exclusive projects A and B. The crossover point is 10% percent. Blue Space X has determined that they should accept project A if the required return is 8 percent. This implies you should:
Question 7 options:
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| always accept project A |
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| always accept project A if the required return is smaller than the crossover rate |
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| be indifferent to the projects at any discount rate above 10 percent |
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| accept project B only when the required return is zero. |
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| always accept project A if the required return exceeds the crossover rate |
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