$$

Projects A and B are mutually exclusive and have normal cash flows. Project A has an IRR of $15\%$ and Br IRR is $20\%.$ The company$/$s cost of capital is $12\%K$ and at that rate Project A has the higher NPV$,$ Which of the following statements is CORRECT?

a$.$ Since B has the higher IRR, then it must also have the higher NPV if the crossover rate is less than the cost of capeal of $12$ H

The crossover rate for the two projects must be less than $12\%.$

c$.$ The crossover rate for the two projects must be $12\%.$

d$.$ Assuming the timing pattern of the two projects' cash flows is the same, Project B probably has a ligher cout $($und lerger scale$).$

e$.$ Assuming the two projects have the same scale, Project B probably has a faster payback thun Project A$.$

Moving to another question will save this response.

Question $9$ of $15$