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Author Question: Project Xs IRR is 22% and Project Ys IRR is 18%. The projects have the same risk and the same lives, ... (Read 66 times)

ninaj

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Project X’s IRR is 22% and Project Y’s IRR is 18%. 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 13%, 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 less than 13%.


If the WACC is 11%, Project Y will have the lower NPV. 


The crossover rate between the two projects must be greater than 13%.


If the WACC is 20%, Project X will have the lower NPV.



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Marked as best answer by ninaj on Aug 7, 2023

psuniv

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ninaj

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


xiazhe

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Reply 3 on: Yesterday
Wow, this really help

 

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