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You are comparing two mutually exclusive projects. At 10 percent discount rate both projects have the same NPV. Project A has an internal rate of
You are comparing two mutually exclusive projects. At 10 percent discount rate both projects have the same NPV. Project A has an internal rate of return (IRR) of 20 percent. Project B has an IRR of 15. Which of the following statements is most correct?
Always accept project A. | ||
Accept project B if the required return in greater than 10 percent. | ||
Accept both projects. | ||
Reject both projects. | ||
Accept Project B when the required return is less than 10 percent. |
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