6) The following graph represents the Profile of Net Present Values (NPV Profile) for Projects A and B. Both projects have the same duration, the same initial investment and the cost of capital, r, of both is less than the Cross Over Point . According to the information provided, the capital budget should include:

NPV B A Project B, since at the cost of capital its NPV is greater than the NPV of A b. Project A, since at the cost of capital, r, its NPV is greater than the NPV of Project B C. Project A, since its IRR is equal to the IRR of Project B d. Project A, since at the cost of capital, r, its IRR is greater than the IRR of B It cannot be determined, since there is a conflict with the information provided by both project evaluation methods at that capital cost. a. and.. O O O O