Suppose the Canadian Space Agency has two independent Martian rover projects: Spirit and Endeavour.Project Spirit has an IRR of 10 percent and project Endeavour has an IRR of 15 percent.The crossover rate is 9 percent.The project's appropriate discount rate is 18 percent.

Question

Quizplus · Accepted Answer

Since the appropriate discount rate of 18% is higher than the IRRs of both projects (Spirit at 10% and Endeavour at 15%), neither project should be accepted as they do not meet the required return.

Suppose the Canadian Space Agency Has Two Independent Martian Rover