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The following table gives the net present value (NPV) of two projects at two different levels: NPV @ 5% NPV @ 10% Project A R100
The following table gives the net present value (NPV) of two projects at two different levels:
| NPV @ 5% | NPV @ 10% |
Project A | R100 | R0 |
Project B | R80 | R60 |
Which one of the following statements is correct?
(a) A is more profitable than B
(b) The internal rate of return is higher for A than B
(c) A will earn a return higher than 15%
(d) A is more sensitive to changes in the discount rate than B.
(e) None of the above
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