A firm with a cost of capital of 7% is considering two projects (they are not mutually exclusive), one expected to return 9% and a second expected to return 9.5%. Which projects should it pursue

pursue both projects

Explanation:

The projects are not mutually exclusive thus the choice of one project does not hold back the pursuant of another (can occur at the same time).

Projects which provide a return above their cost of capital must be pursued as they are less risky.

Both projects provide the return above the costs of capital and should be pursued.

c.

clarify customers’ doubts only when asked.

answer target market;