Question: Projects Alpha and Beta are normal projects whose NPV profiles cross at 14%. Project Alpha has an IRR of 34% and Project Beta has an

Projects Alpha and Beta are normal projects whose NPV profiles cross at 14%. Project Alpha has an IRR of 34% and Project Beta has an IRR of 25%. Which of the following is true if projects Alpha and Beta are mutually exclusive?

A. Project Beta should be selected if the cost of capital = 12%. B. Project Beta should be selected if the cost of capital = 16%. C. Project Alpha should be selected if the cost of capital = 10%. D. Project Alpha should be selected if the cost of capital = 35%.

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