20. Two projects have the following projected cash flows, NPVs, IRRs: 0 Project A Cash Flow -S150,000 $30,000 $40,000 $37,500 $37,500 $45,000 Project B Cash Flow -$105,000 $30,000 $45,000 $30,000 $15,000 $7,500 2 3 4 5 Project A Project B @lower WACC @ lower WACC Project A @higher WACC 8.2% -$798 8.0% Project B @higher WACC 8.2% $849 8.6% WACC NPV IRR 7.0% $4,279 8.0% 7.0% $3,622 8.6% The project(s) you select may vary depending on the WACC and whether they are independent or mutually exclusive. Which of the following statements is incorrect? A) If the projects are independent and the WACC is 7.0%, both projects A and B are acceptable B) If the projects are mutually exclusive and the WACC is 7.0%, only project A is acceptable C) If the WACC is lower than the IRR, then the NPV will be positive D) If the projects are independent and the WACC is 8.2%, both projects A and B are acceptable E) If the projects are mutually exclusive and the WACC is 8.2%, only project B is acceptable