Question: You are considering two mutually exclusive projects. Project A costs $2.4 million, has a required return of 15.5 percent, and an IRR of 15.1 percent.

You are considering two mutually exclusive projects. Project A costs $2.4 million, has a required return of 15.5 percent, and an IRR of 15.1 percent. Project B costs $6.8 million, has a required return of 10.5 percent and an IRR of 10.7 percent. Which project(s) should be accepted?

Project A only

Project B only

both A and B

neither A nor B

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