Question: Question 18 5.88 pts The Death Star is considering two projects, A and B, which are equally risky, mutually exclusive, and have normal cash flows.
Question 18 5.88 pts The Death Star is considering two projects, A and B, which are equally risky, mutually exclusive, and have normal cash flows. Project A has an IRR of 15%, while Project B's IRR is 12%. The two projects have the same NPV when the cost of capital is 7%. which of the following statements is CORRECT? O Project As NPV is more sensitive to changes in cost of capital than Project B's. If the cost of capital is 5%, Project A will have the higher NPV. + If the cost of capital is 9%, both projects will have a negative NPV. lf the cost of capitalis 13.5%. Project A will have the lower NPV. @ If the cost of capital is 9%, both projects will have positive NPVs
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