$9$

$5$ points

Consider two projects, $x$ and $Y.$ Project X$\text{'}$s IRR is $19\%$ and Project Y$\text{'}$s IRR is $17\%.$ The projects have the same risk and the same lives, and each has constant cash flows during each year of their lives. If the cost of capital is $10\%,$ Project Y has a higher NPV than X$.$ Given this information, which of the following statements is CORRECT?

The crossover rate must be greater than $10\%.$

If the cost of capital is $8\%,$ Project X w $x$ have the higher NPV$.$

The crossover rate must be less than $10\%.$

If the cost of capital is $18\%,$ Project Y will have the higher NPV$.$

Project $x$ is larger in the sense that it has the higher initial cost.