Question: Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has an IRR of 11%, while
Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has an IRR of 11%, while Project B's IRR is 14%. When the WACC is 8%, the projects have the same NPV. Given this information, which of the following statements is CORRECT? O a. If the WACC 94. Project AS NPV will be higher than Project 's. O bif the WACC greater than 14, Project A's IRR will exceed Project it's of the WACC 9. Proje NPV wil be higher than Project AS dif the WACC 13, Pro AS NPV wib be higher than Project Bs. If the WACC 56 Project BNPV will be higher than Project A's
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