You are comparing two mutually exclusive projects. The crossover point is 9 percent. You determine
that you should accept project A if the required return is 6 percent. This implies that you should
always accept project A and always reject project

Question

Quizplus · Accepted Answer

The decision to accept project A or B depends on the required return relative to the crossover point. If the required return is below the crossover point (9%), project A is preferred. However, if the required return is above 9%, project B may be more favorable.

You Are Comparing Two Mutually Exclusive Projects