Project a Has an Internal Rate of Return (IRR)of 15

question 100

Multiple Choice

Project A has an internal rate of return (IRR) of 15 percent.Project B has an IRR of 14 percent.Both projects have a required return of 12 percent.Which of the following statements is most correct?

• A) Both projects have a positive net present value (NPV).
• B) Project A must have a higher NPV than project B.
• C) If the required return were less than 12 percent, Project B would have a higher IRR than Project A.
• D) Project B has a higher profitability index than Project A.

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