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Projects A and B both have normal cash flows, with the same initial cash outflows and the same expected lives. The following graph plots the
Projects A and B both have normal cash flows, with the same initial cash outflows and the same expected lives. The following graph plots the NPV profiles of both projects: NPV ($) A (8) Which of the following statements is CORRECT? a. Additional information on the cost of capital in order to determine which project has the larger early cash flows. b. More of Project B's cash flows occur in the later years. O C More of Project A's cash flows occur in the later years. O d. Project A has a higher IRR than Project B. Oe. The crossover rate, i.e., the rate at which Projects A and B have the same NPV, is greater than either project's IRR
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