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

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 (i.e., a cash outflow in year 0 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? 01) The NPV of Project A is greater than the NPV of Project B. 2) There is not enough information provided to correctly answer this question. 3) Both projects have a negative NPV. 04 The NPV of Project B is greater than the NPV of Project A. 5) Both projects have a positive NPV

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