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Project B Has an IRR of 12

Question 8

Multiple Choice

Project B has an IRR of 12%.The appropriate hurdle rate is 14%.If this is a financing project then what should the company do about Project B?


A) Accept Project B.
B) Reject Project B.
C) Either accept or reject Project B as it makes no difference to the wealth of shareholders.
D) Not make any decision as there is insufficient information to decide if the project will be beneficial to the shareholders.

Correct Answer:

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