Question: Projects A and B are mutually exclusive and have conventional cash flows. The crossover rate is 10% and Project A is preferred at a discount

Projects A and B are mutually exclusive and have conventional cash flows. The crossover rate is 10% and Project A is preferred at a discount rate of 8%. Both projects have a positive NPV if the required return is 10%. Which of the following statements is true? (More than one might be true)

Project B is preferred at a discount rate of 12%
Project B is preferred at a discount rate of 10%
The two projects have the same NPV when the required return is 10%.
Project A is preferred at a discount rate of 10%
Project A is preferred at a discount rate of 5%
Project A must have a higher IRR than Project B
Project B must have a higher IRR than Project A
Both projects must have an IRR higher than 10%
Project A is preferred at a discount rate of 15%

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