Use the following statements to answer this question:
I.Replacement projects are projects that involve the replacement of an existing asset.The incremental cash flows are the difference between the cash outflows and the cash inflows of the two projects.
II.The discount rate of the two projects must be the same.
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.
Correct Answer:
Verified
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