Question: Assume two mutually exclusive projects A and B have the same scale and life, but different timing of cash flows. Project A is expected to

Assume two mutually exclusive projects A and B have the same scale and life, but different timing of cash flows. Project A is expected to generate large cash flows earlier in the life of the project, while project B is expected to generate large cash flows towards the end of the project. What is the range of the discount rate r (to calculate NPV) that A should be accepted.

Group of answer choices

r > crossover rate of A and B, r < IRR of A

r < crossover rate of A and B, r < IRR of A

r < crossover rate of A and B, r > IRR of A

r > crossover rate of A and B, r > IRR of A

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