You are evaluating the feasibility of two mutually exclusive projects and have generated the NPV profile of the two projects as follows.

Both projects require $2000 initial investment. Which of the following statements is CORRECT?

Select one:

a.

If the cost of capital is 8%, the company should accept both projects.

b.

If the cost of capital is 8%, Project B has a higher profitability index than Project A.

c.

If the cost of capital is 17%, the company should choose Project A.

d.

If the cost of capital is 8%, the company should accept Project A.

e.

If the cost of capital is 17%, the company should choose Project B