Question: Projects A and B are equally risky, mutually exclusive, and have normal cash flows. Both projects also have the same expected lives and identical initial

Projects A and B are equally risky, mutually exclusive, and have normal cash flows. Both projects also have the same expected lives and identical initial cash outflows. The NPV profiles for each project is shown below. Which of the following statements is CORRECT?

Group of answer choices

More of Project A's cash flows occur in the later years.

The crossover rate is greater than either project's IRR.

More of Project B's cash flows occur in the later years.

If the cost of capital is less than the crossover rate, then the IRR and the NPV criteria will not result in a conflict between the projects.

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