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Suppose the Canadian Space Agency Has Two Mutually Exclusive Projects

Question 31

Multiple Choice

Suppose the Canadian Space Agency has two mutually exclusive projects: landing a woman on Mars and landing a man on Venus.Project Mars has an IRR of 12 percent and project Venus has an IRR of 15 percent.The crossover rate is 9 percent.The project's appropriate discount rate is 18 percent.


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

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