Projects X and Y are equally risky, mutually exclusive, and have normal cash flows. Project X has an IRR of 152%, while Project Ys IRR is 8%. The two projects have the same NPV when the WACC is 4%. Which of the following statements is CORRECT?

a. If the WACC is 3% Project Y will have the higher NPV; therefore you will accept project Y

b. If the WACC is 10% project Y will have the lower NPV; therefore you will accept project X

c. If the WACC is 7%, both projects will have a negative NPV; therefore neither will be accepted

d. If the WACC is 6%, both projects will have positive NPVs; therefore both of the projects will be accepted.

e. If the WACC is 5%, project Y will have the higher NPV; therefore you will accept project Y