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Project A has an NPV of $8,284.88 and Project B has an NPV of $4,371,25. Both projects have normal (standard) cash flows and WACC for
Project A has an NPV of $8,284.88 and Project B has an NPV of $4,371,25. Both projects have normal (standard) cash flows and WACC for both projects is 14%. Which of the following statements is correct? a. Both projects have IRR greater than 14%. b. Both projects have IRR less than 14%. c. Project A must have a higher IRR than Project B. d. Project B must have a higher IRR than Project A. e. None of the answers listed above are correct.
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