Projects having normal cash flows

Reference no: EM13128614

Ahyee Corp. is considering two equally risky, mutually exclusive projects, both of which projects have normal cash flows. Project A has an IRR of IRR of 11%, while Project B's IRR is 14%. When the WACC is 8%, the projects have the same NPV. If the WACC is 9%, Project B's NPV will be higher than Project A's. Why do you think this is a correct statement?

Reference no: EM13128614

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