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Suppose the Canadian Space Agency Has Two Mutually Exclusive Projects

Question 23

Multiple Choice

Suppose the Canadian Space Agency has two mutually exclusive projects: landing a person on Mars and landing a person on Venus.Project Mars has an IRR of 12% and project Venus has an IRR of 15%.The crossover rate is 9%.The project's appropriate discount rate is 8%.


A) Accept project Mars.
B) Accept project Venus.
C) Accept both projects.
D) Accept neither project.

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