Which investment do you recommend company undertake

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Reference no: EM13919388

Two investments, C and D are being evaluated. They are mutually exclusive. Investment C has a higher NPV using any discount rate between zero and 9%, while D has a higher NPV using any discount rate between 9.1% and 15%. Which investment do you recommend the company undertake? The cost of both opportunities is the same. Which of the following is the BEST answer?

a. Recommend C if the required return is between zero and 9 percent.

b. Recommend C if the required return is between 9.1% and 15%.

c. Recommend C.

d. Recommend D.

Reference no: EM13919388

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