When Will You Be Indifferent Between Two Mutually Exclusive Projects

question 92

Multiple Choice

When will you be indifferent between two mutually exclusive projects of similar size?

• A) When the required return on the projects is equal to the crossover discount rate
• B) When the time period of the projects are equal
• C) When both projects have only cash inflows following the initial cash outflow
• D)When both projects have IRR's that exceed the crossover discount rate

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