Project A has an internal rate of return (IRR) of 15 percent. Project B has an IRR of 14 percent. Both projects have a required return of 12 percent. Which of the following statements is most correct?

Answer

A)Both projects have a positive net present value (NPV).

B)Project A must have a higher NPV than project B.

C)If the required return were less than 12 percent, Project B would have a higher IRR than Project A.

D) Project B has a higher profitability index than Project A.