Question: A company is comparing two mutually exclusive projects with normal cash flows (negative cashflow at t=0 and positive cashflows thereafter). Project P has an IRR

A company is comparing two mutually exclusive projects with normal cash flows (negative cashflow at t=0 and positive cashflows thereafter). Project P has an IRR of 15 percent, while Project Q has an IRR of 20 percent. If the WACC is 10 percent, the two projects have the same NPV. Which of the following statements is most correct? If the WACC is 12 percent, both projects would have a positive NPV. II. If the WACC is 12 percent, Project Q would have a higher NPV than Project P. III. If the WACC is 8 percent, Project Q would have a lower NPV than Project P. 1. Select one: O A. I, II and III OB. Only 1 and 11 OC. Only II D. Only E. Only

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