Project beta and internal rate of return

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Reference no: EM13813433

Project Alpha has an internal rate of return (IRR) of 15 percent. Project Beta has an IRR of 14 percent. Both projects have a required return of 12 percent. Which of the following statements is MOST correct?

Both projects have a positive net present value (NPV).

Project Alpha must have a higher NPV than Project Beta.

Project Beta has a higher profitability index than Project Alpha.

If the required return were less than 12 percent, Project Beta would have a higher IRR than Project Alpha.

Reference no: EM13813433

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