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You have two mutually exclusive projects with the cash flows as follows. Which statement is not correct? Year Project A Project B 0 -$50 -$100

You have two mutually exclusive projects with the cash flows as follows. Which statement is not correct?

Year

Project A

Project B

0

-$50

-$100

1

20

20

2

10

50

3

15

10

4

20

20

5

35

80

Group of answer choices

At 30% discount rate you will reject both projects.

As the discount rates goes up, the NPVs of both projects drop at an increasing rate.

Ignoring the time value of money, project B adds $30 more value than the project A.

The crossover rate is smaller than 20%.

If the discount rate is less than the crossover rate, you will choose project B.

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