Question: QUESTION 6 Young Consulting is currently deciding which mutually exclusive project it should take on. Assume that the firm's cost of capital is 12 percent

QUESTION 6 Young Consulting is currently deciding which mutually exclusive project

QUESTION 6 Young Consulting is currently deciding which mutually exclusive project it should take on. Assume that the firm's cost of capital is 12 percent and that both projects inve normal casl flows and equal lives. Which of the following statements is most CORRECT? Project. A Project B NPV 5600 $850 IRR 15% 18% O a. The crossover rate is between 12% and 15%. The crossover rate is between 18% and 21%. b. O c. Since NPV and IRR agree, the NPV profiles for Project A and B do not cross. Od. Since NPV and IRR agree, the NPV profiles might cross at a crossover rate less than 12% There is not enough information to draw any of the above conclusions. O

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