Question: Projects A and B have normal cash flows. Project A has an IRR of 11%, while Project B's IRR is 14%. The two projects have

 Projects A and B have normal cash flows. Project A has

Projects A and B have normal cash flows. Project A has an IRR of 11%, while Project B's IRR is 14%. The two projects have the sameNPV when the cost of capital is 9%. Which of the following statements is correct? a. If the cost of capital is 7%. Project A will have the lower NPV. b. If the cost of capital is 13%. Project A will have the higher NPV. c. If the cost of capital is 12%, both projects will have a positive NPV. d. If the cost of capital is 10%, both projects will have a negative NPV. e. Project A's NPV is more sensitive to changes in cost of capital than Project B's

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