Question: Wade Wilson Studios is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has an IRR of 11%,
Wade Wilson Studios is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has an IRR of 11%, while projects Bs IRR is 14%. When the WACC is 0% Project A has a NPV higher than Project Bs NPV. When the WACC is 8%, the projects have the same NPV. Given this information, which of the following statements is CORRECT? Group of answer choices If the WACC is 9%, Project As NPV will be higher than Projects Bs If the WACC is 6%, Projects Bs NPV will be higher than Project As If the WACC is 13%, Project As NPV will be higher than Projects Bs If the WACC
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