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:
A. 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.
B. Both projects have a negative NPV at discounts rates greater than 11.7 percent.
C. Both projects provide an internal rate of return of 11.7 percent.
D. Both projects have a zero NPV at a discount rate of 11.7 percent.
E. Neither project will be accepted if the discount rate is less than 11.7 percent.