Higher net present value if the discount rate exceeds

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Normal projects C and D are mutually exclusive. Project C has a higher net present value if the discount rate is less than 12 percent, whereas Project D has a higher net present value if the discount rate exceeds 12 percent. Which of the following statements is most correct? a. Project D must have a higher internal rate of return. b. Project D and Project C have a crossover rate of 12%. c. You should be indifferent between the two projects if the discount rate is 12% d. Statements b and c are correct. e. All of the statements above are correct.

Reference no: EM131339719

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