Refer to the following information in answering questions 4 to 6 . Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow: 4. Consider only projects A and B by examining the incremental project cash flows BA. They are mutually exclusive opportunities. If the IRR IBA=12% and the discount rate is 15% then what is your decision? (A) Since IRR BA RRR then since the incremental project is a financed project, we should Accept Project B over A. (C) Since IRR BA RRR then since the incremental project is an investment project, we should Accept Project B over A. (E) None of the above are true. 5. Ignoring the information in question (a), assume instead that projects A and C are independent, Hardchoice is subject to capital rationing (i.e., it may not be able to afford both projects), and the relevant discount rate is 10%. How would you rank A and C ? (A) IRR of Project A is 14% and IRR of Project C is 41%, so Project A is better than Project C. (B) IRR of Project A is 14% and IRR of Project C is 41%, so Project C is better than Project A. (C) PI of Project A is 1.12 and PI of Project C is 1.9, so Project C is better than project A. (D) PI of Project A is 1.12 and PI of Project C is 1.9, so Project A is better than project C. (E) None of the above are true. 6. Which one of the following statements is true: (A) The NPV of project D will be much more sensitive to changes in the discount rate than will the NPV of project A. (B) If projects C and D are mutually exclusive, incremental analysis indicates that one should reject project C and accept project D. (C) It is possible for projects A and D to have the same NPV. (D) All of the above are true. (E) None of the above is true