1)

True of false?

For mutually exclusive projects, the project with the higher IRR is the correct selection

2)

Which of the following projects would you feel safest in accepting? Assume the opportunity cost of capital to be 12% for each project.

"A" has a small, but negative, NPV.

"B" has a positive NPV when discounted at 10%.

"C's" cost of capital exceeds its rate of return.

"D" has a zero NPV when discounted at 14%.