Question: Moynihan Motors has a WACC of 10%. The firm is considering two normal, equally risky, but mutually exclusive projects. Project A has an IRR of 15%, while Project B has an IRR of 20%. Which of the following statements is CORRECT?
A. Both projects have a negative NPV.
B. Since the projects are mutually exclusive, the firm should always select Project B
C. If the crossover rate is 8%, Project B will have a higher NPV than Project A.
D. Only one project has a positive NPV.
E. If the crossover rate is 8%, Project A will have a higher NPV than Project B