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7 . Which one of the following statements about Projects A and B , whose NPV profile is shown above, is TRUE? a . If

7. Which one of the following statements about Projects A and B, whose NPV profile is shown above, is
TRUE?
a. If the cost of capital is 11% and the projects are independent then neither project should be
accepted.
b. If the cost of capital is 14% and the two projects are independent then only project B should be
accepted.
c. If the cost of capital is 6% and the projects are independent then only project A will be accepted.
d. The internal return for A is greater than the internal return for B.
e. If the cost of capital is 10% and the two projects are mutually exclusive then both A and B should
be accepted.

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