Internal rate of return, Project A has an internal rate of

Internal rate of return

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Reference no: EM13731434

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

A) Both projects have a positive net present value

B) Project A must have a higher NPV than project B

C) If the required rate 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

Reference no: EM13731434

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