Question: Delta Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has an IRR of 10% while
Delta Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has an IRR of 10% while Project B's IRR is 13%. When the cost of capital is 7%, the projects have the same NPV. Given this information, which of the following statements is CORRECT? a. If the cost of capital is 8%, Project B's NPV will be higher than Project A's. b. If the cost of capital is 12%, Project A's NPV will be higher than Project B's. call the cost of capital is greater than 13%, Project A's IRR will exoved Project B's. d. If the cost of capital is 5%, Project B'S NPV will be higher than Project A's
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