Swenson’s is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 11.7 percent. Given this you know that:

Both projects have a negative NPV at discounts rates greater than 11.7 percent.

The project that is preferred at a discount rate of 11 percent will be the opposite project of that preferred at a discount rate of 12 percent.

Both projects have a zero NPV at a discount rate of 11.7 percent.

Both projects provide an internal rate of return of 11.7 percent.

Neither project will be accepted if the discount rate is less than 11.7 percent.