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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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