Question: Part III: Multiple Choice etc. (8 points total) 1. (3 points) Project A and B are equally risky, mutually exclusive, and have normal cash flows.

Part III: Multiple Choice etc. (8 points total) 1. (3 points) Project A and B are equally risky, mutually exclusive, and have normal cash flows. Project B has an IRR of 15%, while Project A's IRR is 12%. The two projects have the same NPV when the required rate of return is 8%, which of the following statements is correct? a. If the discount rate is 10%, both projects will have a positive NPV. b. If the discount rate is 7%, Project B will have the higher NPV C. If the discount rate is 14%, Project B will have the lower NPV d. If the discount rate is 10%, both projects will have a negative NPV e. Project B's NPV is more sensitive to changes in the discount rate than project A

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