Projects C and D Are Mutually Exclusive and Have Normal

question 42

Multiple Choice

Projects C and D are mutually exclusive and have normal cash flows.
Project C has a higher NPV if the WACC is less than 12%, whereas Project D has a higher NPV if the WACC exceeds 12%. Which of the following statements is CORRECT?

• A) Project D probably has a higher IRR.
• B) Project D is probably larger in scale than Project C.
• C) Project C probably has a faster payback.
• D) Project C probably has a higher IRR.
• E) The crossover rate between the two projects is below 12%.

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A famous actor or actress, especially one known for their roles in films.

Fallacy of Accent

A logical fallacy that arises from placing undue emphasis on certain words or phrases in an argument, potentially altering their intended meaning.