Question: Consider two projects, A and B, where Project A has an IRR of 18% and Project B has an IRR of 11%. Both projects have

Consider two projects, A and B, where Project A has an IRR of 18% and Project B has an IRR of 11%. Both projects have normal cash flows (.e., a cash outflow in year O followed by cash inflows for all other years of the project) and the appropriate cost of capital for both projects is 14%. Which of the following statements is correct? 1) There is not enough information provided to correctly answer this question. O2) Both projects have a positive NPV. 3) The NPV of Project B is greater than the NPV of Project A. 4) Both projects have a negative NPV. 5) The NPV of Project A is greater than the NPV of Project B

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