A firm with a cost of capital of 13.5 percent is evaluating three capital projects. The internal rates of return are as follows: Internal Rate Project 1 2 of Return 12% The firm should. 15 13 A) accept Project 1 and 2, and reject Project 3 B) accept Project 2, and reject Projects I and 3 OC) accept Project 1, and reject Projects 2 and 3 D) accept Project 3, and reject Projects 1 and 2

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A firm with a cost of capital of 13.5 percent is evaluating three capital projects. The internal rates of return are as follows:
Internal Rate
of Return
12%
Project
1
2
3
The firm should
15
13
A) accept Project 1 and 2, and reject Project 3
B) accept Project 2, and reject Projects 1 and 3
C) accept Project 1, and reject Projects 2 and 3
D) accept Project 3, and reject Projects 1 and 2
Transcribed Image Text:A firm with a cost of capital of 13.5 percent is evaluating three capital projects. The internal rates of return are as follows: Internal Rate of Return 12% Project 1 2 3 The firm should 15 13 A) accept Project 1 and 2, and reject Project 3 B) accept Project 2, and reject Projects 1 and 3 C) accept Project 1, and reject Projects 2 and 3 D) accept Project 3, and reject Projects 1 and 2
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