Project X's IRR Is 19% and Project Y's IRR Is

question 16

Multiple Choice

Project X's IRR is 19% and Project Y's IRR is 17%.The projects have the same risk and the same lives,and each has constant cash flows during each year of their lives.If the WACC is 10%,Project Y has a higher NPV than X.Given this information,which of the following statements is correct?

• A)The crossover rate between the two projects must be less than 10%.
• B)The crossover rate between the two projects must be greater than 10%.
• C)If the WACC is 8%, Project X will have the higher NPV.
• D)If the WACC is 18%, Project Y will have the higher NPV.

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Definitions:

Cilia

Tiny, hair-like structures that protrude from the surface of many cells, playing roles in movement, sensation, and filtration.

Actin Filaments

Actin Filaments are long, thin fibers found in cells that are crucial for cell movement, shape, and division.

Gustatory Nerve

Nerves that transmit taste information from the taste buds to the brain.

Vagus Nerve

The tenth cranial nerve, which is involved in controlling heart rate, gastrointestinal peristalsis, sweating, and muscle movements in the voice box.