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If two independent projects meet the hurdle rate, then both projects should ____________?

Independent projects are those whose acceptance does not affect the selection of other projects. If both projects meet or exceed the hurdle rate (minimum required return), each project adds value to the firm. Therefore, both projects should be accepted without... Read More

1 FINANCE MCQS

If two independent projects meet the hurdle rate, then both projects should ____________?

  • Not be accepted
  • Be accepted
  • Have capital acceptance
  • Have return rate acceptance
Correct Answer: B. Be accepted

Detailed Explanation

Independent projects are those whose acceptance does not affect the selection of other projects. If both projects meet or exceed the hurdle rate (minimum required return), each project adds value to the firm. Therefore, both projects should be accepted without comparison.

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