Question: You are looking at an NPV profile and note that the cross-over rate is 9.91%. Project B has an IRR of 26.18%, and is less

You are looking at an NPV profile and note that the cross-over rate is 9.91%. Project B has an IRR of 26.18%, and is less risky. Project A has an IRR of 18.86% and is more risky. However, you know that your firms cost of capital (ROR) is 8.27%. Given this information which project should you select? Group of answer choices

A Project B, lower risk higher IRR

B Either project, it does not matter since both IRRs are greater than the ROR of the firm

C I need a new job, this does not make sense to me

D Project A, even though project A has a higher risk and lower IRR given the firms ROR it is the better project.

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