Two projects are considered to be independent if selecting one would have no bearing on accepting the
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Question:
Two projects are considered to be independent if selecting one would have no bearing on accepting the other and their cash flows are unrelated.
True
False
If both projects are positive-NPV projects, then the firm should _____.
A. | accept both projects because they are independent projects. |
B. | select the higher NPV project because they are mutually exclusive. |
C. | accept both projects because they are contingent projects. |
D. | not enough information is given to make a decision. |
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