QUESTION 16 clifford Company rs choosaag between two proyects The larger preyect Ca an initial cost of s100,000, ammal cash flows of sso ooo for S years, and an IRR of 15 2 The smanen wonect was an cost of S50.000. anunal cash flows of sio 000 for 5 years and an IRR of 16 63% The preyects are equally risky Which of the following statements CORRECT? a the smaller Protect has the h gher IRR and the larger NPv at a zero discourt tate, the two projects Niv profiles will cross. and de vnullet peonect will look tener cout olcavaal w less than the crossover rate NPW if the cost of capital is less than the crossover rate. c since the smaller project has the higher IRR. the two projects' NPv profiles camot cross. and the suraller projecrs NPv will be hagher at all positive values cest d if the company uses the NPV method, it will tend lo favor smaller. sloeter-termprojects over larger, longer-term projects, tegardless of how cost of capital w e Sance the smaller proyect has the higher IRR, the two projects' NPv profiles will erous, and the larger project will look bemer based on the NPv at all vositive valaes of de cost of caval 4 points save answe UESTION 17 Recession, inflation, and hegh interest rates are economic events that are best characterized as being o a irrelevant except to ntal authorities like the Federal Reserve govemme b. systematic risk factors that can be diversified away. c among the factors that are responsible for market risk d company specific risk factors that can be diversified away analysts or portfolio managers. e risks that are beyond the control of investors and thus should not be considered by secuity arch right here