Project xrsquos irr is 19 and project yrsquos irr is 17 the, Ask an Expert

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Project X’s IRR is 19% and Project Y’s IRR is 17%. The projects have the same risk and the same lives, and each has constant cash flows during each year of their lives. If the WACC is 10%, Project Y has a higher NPV than X. Given this information, which of the following statements is correct?

The crossover rate between the two projects must be greater than 10%.

The crossover rate between the two projects must be less than 10%.

If the WACC is 8%, Project X will have the higher NPV.

If the WACC is 18%, Project Y will have the higher NPV.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92066205

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