Moynihan Motors has a WACC of 10%. The firm is considering two normal, equally risky, but mutually exclusive projects. Project A has an IRR of 15%, while Project B has an IRR of 20%. Which of the following statements is CORRECT?

A. Both projects have a negative NPV.

B Since the projects are mutually exclusive, the firm should always select Project B

C. If the crossover rate is 8%, Project B will have a higher NPV than Project A.

D Only one project has a positive NPV.

E. If the crossover rate is 8%, Project A will have a higher NPV than Project B

A. Both projects have a negative NPV.

B Since the projects are mutually exclusive, the firm should always select Project B

C. If the crossover rate is 8%, Project B will have a higher NPV than Project A.

D Only one project has a positive NPV.

E. If the crossover rate is 8%, Project A will have a higher NPV than Project B

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