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Business, 07.11.2019 23:31 angelak461

Projects a and b are mutually exclusive and have normal cash flows. project a has an irr of 15% and b's irr is 20%. the company's cost of capital is 12%, and at that rate project a has the higher npv. which of the following statements is correct? a. assuming the timing pattern of the two projects' cash flows is the same, project b probably has a higher cost (and larger scale).b. assuming the two projects have the same scale, project b probably has a faster payback than project a. c. the crossover rate for the two projects must be 12%.d. since b has the higher irr, then it must also have the higher npv if the crossover rate is less than the cost of capital of 12%.e. the crossover rate for the two projects must be less than 12%.

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