Hi Professor

While studying Finance i am not able to solve this puzzle. Can you help me to solve this .

If two mutually exclusive projects were being compared, would a high cost of capital favour the longer-term or the shorter-term project? Why? If the cost of capital declined, would that lead firms to invest more in longer-term projects or shorter-term projects? Would a decline (or an increase) in WACC cause changes in the IRR ranking of mutually exclusive projects? waht is the general view or answer with reference to NPV and IRR methods of capital budgeting.