Question: You are looking at an NPV profile and note that the cross-over rate is 12.19%. Project ( mathrm{B} ) has an IRR of 21.18, and
You are looking at an NPV profile and note that the \"cross-over rate\" is 12.19\\%. Project \\( \\mathrm{B} \\) has an IRR of \21.18, and is less risky. Project A has an IRR of \18.86 and is more risky. However, you know that your firm's cost of capital (ROR) is \10.27. Given this information which project should you select? Either project, it does not matter since both IRR's are greater than the ROR of the firm Project A, even though project A has a higher risk and lower IRR given the firm's ROR it is the better project. Project B, lower risk higher IRR I need a new job, this does not make sense to me
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