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

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Accepted Answer

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

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MCQ Detailed View

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

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…