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What is the significance of the crossover rate? [I] At the crossover rate, the two projects have the same NPV. [II] If the projects' cost

What is the significance of the crossover rate? [I] At the crossover rate, the two projects have the same NPV. [II] If the projects' cost of capital is below the crossover rate, there will be a conflict in project selection between the NPV and IRR. [III] If the cost of capital is above the crossover rate, there will be no conflict in project selection between NPV and IRR. [IV] The crossover rate marks where the NPV of both projects is equal to zero. [V] The IRR of the two projects is the same

A. I, IV, V

B. III, IV, V

C. I, II, III

D. All are correct in describing the significance of crossover rate

E. None is correct

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