Required Return Projects
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The required return is 15 percent for both projects. Which one of the following statements related to these projects is correct?
A Because both the IRR and the PI imply accepting Project B, that project should be accepted.
B The profitability rule implies accepting Project A.
C The IRR decision rule should be used as the basis for selecting the project in this situation.
D Only NPV implies accepting Project A.
E NPV, IRR, and PI all imply accepting Project A.
(See attached file for data)
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Solution Summary
This solution shows the calculations for the problem as given. The full solution is in the Excel worksheet. IRR, NPV, and both projects are calculated/discussed.
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The required return is 15 percent for both projects. Which one of the ...
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