Question: Orange Seasons is comparing two mutually exclusive projects A and B. The crossover point is 9% percent. Orange Seasons has determined that they should accept

 Orange Seasons is comparing two mutually exclusive projects A and B.

Orange Seasons is comparing two mutually exclusive projects A and B. The crossover point is 9% percent. Orange Seasons has determined that they should accept project B if the required return is 11 percent. This implies you should: always accept project A if the required return exceeds the crossover rate always accept project B accept project B only when the required return is zero. be indifferent to the projects at any discount rate above 10 percent accept project A if the required return is smaller than the crossover rate of 9%

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