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Apple1010
Apple1010
10.04.2020 • 
Business

Swenson's is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 11.7%. Given this you know that:

a. The project that is preferred at a discount rate of 11% will be the opposite project of that preferred at a discount rate of 12%.
b. Both projects have a negative NPV at discounts rates greater than 11.7%.
c. Both projects have a zero NPV at a discount rate of 11.7%.
d. Neither project will be accepted if the discount rate is less than 11.7%.

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