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For two mutually projects, we assume their NPV profiles cross and the crossover rate is 8.7%. We assume the require rate of return is r.
For two mutually projects, we assume their NPV profiles cross and the crossover rate is 8.7%. We assume the require rate of return is r. We use both NPV and IRR methods to analyze the two projects. Which of the following statements is most correct?
a) if r > 8%, NPV and IRR methods get similar decisions
b) if r > 8%, NPV and IRR methods get conflicting decisions
c) if r > 8.7%, NPV and IRR methods get similar decisions
d) if r > 8.7%, NPV and IRR methods get conflicting decisions
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