12. Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. A. A project's regular IRR is found by compounding the initial cost at the WACC to find the terminal value (TV), then discounting the TV at the WACC B. If a project's IRR is positive, then its NPV must also be positive C. To find a project's IRR, we must solve for the discount rate that causes the PV of the future inflows to equal the PV of the project's costs D. If two projects are mutually exclusive and the WACC is less than the cross-over rate, the projects should be rejected E. If a project's IRR is smaller than the WACC, then its NPV will be positive 13. Topanga General Store Inc. estimates that its average-risk projects have a WACC of 10%, its below. average risk projects have a WACC of 8%, and its above-average risk projects have a WACC of 12% Which of the following projects (A, B, and C) should the company accept? A. None of the projects should be accepted B. Project B, which is of above-average risk and has a return of 8.5% C. Project C, which is of below-average risk and has a return of 11% D. Project A, which is of average risk and has a return of 9% E. All of the projects should be accepted