Westchester Corp.is considering two equally risky,mutually exclusive projects,both of which have normal cash flows.Project A has an IRR of 11%,while Project B's IRR is 14%.When the WACC is 8%,the projects have the same NPV.Given this information,which of the following statements is CORRECT?
A) If the WACC is 13%,Project A's NPV will be higher than Project B's.
B) If the WACC is 9%,Project A's NPV will be higher than Project B's.
C) If the WACC is 6%,Project B's NPV will be higher than Project A's.
D) If the WACC is greater than 14%,Project A's IRR will exceed Project B's.
E) If the WACC is 9%,Project B's NPV will be higher than Project A's.

Question

Quizplus · Accepted Answer

Statement e is true,while the others are false.
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