Project A has a $5,000 net present value at a zero discount rate and an internal rate of return of 12%. Project B has an $8,000 net present value at a 0% discount rate and an IRR of return of 10%. If the projects are mutually exclusive, which one should be chosen?
A) project A because it has a higher internal rate of return
B) project B if the cost of capital is less than the crossover point
C) both projects if the net present value is positive
D) not enough information
Correct Answer:
Verified
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