Question: Lancaster Corp. is considering two equally risky, mutually exclusive projects, both of which are characterized by having an initial cash outflow followed by a series

Lancaster Corp. is considering two equally risky, mutually exclusive projects, both of which are characterized by having an initial cash outflow followed by a series of cash inflows. The two projects have the same amount of initial cash outflows, and the same length of life. Project A has an IRR of 11%, while Project B's IRR is 14%. When the cost of capital is 8%, the projects have the same NPV. Given this information, which of the following statements is CORRECT?
If the cost of capital is 9%, Project A's NPV will be higher than Project B's.
If the cost of capital is 6%, Project B's NPV will be higher than Project A's.If the cost of capital is greater than 14%, Project A's IRR will exceed Project B's.
D) If the cost of capital is 9%, Project B's NPV will be higher than Project As.
E) If the cost of capital is 13%, Project A's NPV will be higher than Project B'S.

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