Use the following information for Questions 19-20: Soft Talker Co. is considering two mutually exclusive projects with the following projected cash flows: The WACC for both projects is 10%, Soft Talker performed an analysis of these projects using both the NPV method and the IRR method, with the following results: NPV_x = $8, 756 IRR_x = 14.96% NPV_y = $7, 065 IRR_y = 22.98% What decision should be made regarding these projects, and why? a. Project X should be accepted, because it has the higher NPV. b. Project Y should be accepted, because it has the higher IRR. c. Neither project should be accepted, because both would result in a reduction of wealth for Soft Talker's shareholders. d. No decision can be made, because the two methods (NPV and IRR) give conflicting results Now assume that the WACC is 12%. Which of the following statements is correct? a. There is still a conflict between the two methods: NPV indicates that Project x should be accepted, but IRR indicates that Project Y should be accepted b. There is still a conflict between the two methods: NPV indicates that Project Y should be accepted, but IRR that Project x should be c. There is no conflict between the m Both NPV and IRR indicate that Project X should be accepted. indicate that d. is no conflict between the methods. Both NPV and IRR Project Y should be accepted