You are comparing two mutually exclusive projects. The crossover point is 12.3 p

Question

You are comparing two mutually exclusive projects. The crossover point is 12.3 percent. You have determined that you should accept project A if the required return is 13.1 percent. This implies you should: Question 7 options:
A) always accept project A.
B) be indifferent to the projects at any discount rate above 13.1 percent.
C) always accept project A if the required return exceeds the crossover rate.
D) accept project B only when the required return is equal to the crossover rate.
E) accept project B if the required return is less than 13.1 percent.

Explanation / Answer

the answer is C the guy above is using the wrong numbers ie crossover point

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