Question: QUESTION 6 You are considering the following two mutually exclusive projects. The required rate of return is 10.75 percent for project A and 12 percent

QUESTION 6

  1. You are considering the following two mutually exclusive projects. The required rate of return is 10.75 percent for project A and 12 percent for project B. Which project should you accept and why?

    project A; because it has the lower required rate of return

    project A; because its NPV is bigger than the NPV of project B

    project B; because it has higher IRR.

    both project A and project B; because both projects have positive NPV.

    project B; because it is the largest sized project

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