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$3$

You are using a net present value profile to compare Projects A and B$,$ which are mutually exclusive. Which one of the following statements correctly applies to the crossover point between these two?

$3\mathrm{.}5$

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Multiple Choice

$00$:$59$:$23$

The net present value of Project A equals that of Project B$,$ but generally does not equal zero.

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The net present value of each project is equal to the respective project's initial cost.

The internal rate of return for Project A equals that of Project $B,$ but generally does not equal zero.

The net present value of each project is equal to zero.

The internal rate of return of each project is equal to zero.

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