Swenson's is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 11.7 percent and the required return for both projects is 9 percent. Given this you know that:

Multiple Choice

• both projects have a zero NPV at a discount rate of 11.7 percent.

• neither project will be accepted if the discount rate is less than 11.7 percent.

• the project that is acceptable at a discount rate of 11 percent should be rejected at a discount rate of 12 percent.

• both projects have a negative NPV at discount rates greater than 11.7 percent.

• both projects provide an internal rate of return of 11.7 percent.