Question: 13. Projects C and D are mutually exclusive and have normal cash flows. Project C has a higher NPV if the WACC is less than

13.

Projects C and D are mutually exclusive and have normal cash flows. Project C has a higher NPV if the WACC is less than 12%, whereas Project D has a higher NPV if the WACC exceeds 12%. Which of the following statements is CORRECT?

a. Project D is probably larger in scale than Project C.

b. The crossover rate between the two projects is below 12%.

c. Project D probably has a higher IRR.

d. Project C probably has a faster payback.

e. Project C probably has a higher IRR

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