Business, 04.11.2019 23:31 shrafe

Lancaster 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 cost of capital is 8%, the projects have the same npv. given this information, which of the following statements is correct? a. if the cost of capital is 9%, project a's npv will be higher than project b's. b. if the cost of capital is 6%, project b's npv will be higher than project a's. c. if the cost of capital is greater than 14%, project a's irr will exceed project b's. d. if the cost of capital is 9%, project b's npv will be higher than project a's. e. if the cost of capital is 13%, project a's npv will be higher than project b's.

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