Project Xs IRR is 19 percent. Project Ys IRR is 17 percent. Both projects have the same risk, and both projects have normal cash flows (an initial cost followed by a series of positive cash flows). If the cost of capital is 10 percent, Project Y has a higher NPV than Project X. Given this information, which of the following statements is most correct?

I. The crossover rate between the two projects (that is, the point where the two projects have the same NPV) is greater than 10 percent.

II. If the cost of capital is 8 percent, Project X will have a higher NPV than Project Y.

III. If the cost of capital is 10 percent, Project Xs MIRR is greater than 19 percent.

A.

only II

B.

only III

C.

only I

D.

only I and III

E.

I, II and III