Question: You are comparing two mutually exclusive projects. The crossover point is 9 . 3 % . You have determined that you should accept project Alpha
You are comparing two mutually exclusive projects. The crossover point is You have determined that you should accept project Alpha if the required return is This implies you should:
Be indifferent to the projects at any discount rate above
Accept Project Alpha if the required return exceeds the crossover rate.
Accept Project Beta if the required return is less than
Always accept Project Alpha.
Accept Project Beta only when the required return is equal to the crossover rate.
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