The firms average required rate of return which is 15


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

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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?

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Finance Basics: The firms average required rate of return which is 15
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