Answered

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You are considering two mutually exclusive projects, projects A and B. The crossover point of the NPV profiles for these projects occurs in the first quadrant. The cost of capital is equal to the IRR of "A - B" cash flows. What should your accept decision be?

Multiple choice question.

Accept either project A or B, but not both


Accept project B and reject project A


Accept project A and reject project B


Reject both project A and B

Sagot :

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