Use the Following Statements to Answer This Question

question 8

Multiple Choice

Use the following statements to answer this question:

• A) I and II are correct.
• B) I and II are incorrect.
• C) I is correct, II is incorrect.
• D) I is incorrect, II is correct.
• I.Replacement projects are projects that involve the replacement of an existing project.The incremental cash flows are the difference between the costs and the revenues of the two projects.
• II.The discount rate of the two projects must be the same.