A company is considering two mutually exclusive investment projects, Projects A and B. The crossover rate for these projects is 13 percent. Which statement is true?

Multiple Choice

Neither project will be accepted if the discount rate is less than 13 percent.

The project that is preferred at a discount rate of 12 percent will be the opposite project of that preferred at a discount rate of 14 percent.

Both projects provide an internal rate of return of 13 percent.

Both projects have a negative NPV at discounts rates greater than 13 percent.

Both projects have a zero NPV at a discount rate of 13 percent.