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.

Which of the following?

a.) r > crossover rate of A and B, r > IRR of A

b.) r < crossover rate of A and B, r > IRR of A

c.) r > crossover rate of A and B, r < IRR of A

d.) r < crossover rate of A and B, r < IRR of A