Which project(s) should bogey purchase

Reference no: EM131394437

The CFO of Bogey Golf has been given the following information about two mutually exclusive investments:

The CFO normally uses a risk-adjusted required rate of return to evaluate such investments. The firm's average required rate of return, which is 15 percent, is adjusted by 5 percent for highrisk projects, and it is adjusted by 3 percent for low-risk projects. Which project(s) should Bogey purchase?

Reference no: EM131394437

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