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Which one of the following statements is correct

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Douglass Interiors is considering two mutually exclusive projects and have determined that the crossover rate for these projects is 11.7 percent. Project A has an internal rate of return (IRR) of 15.3 percent and Project B has an IRR of 16.5 percent. Given this information, which one of the following statements is correct?

A.Project A should be accepted as its IRR is closer to the crossover point than is Project B's IRR.


B.Project B should be accepted as it has the higher IRR.


C.Neither project should be accepted since both of the project's IRRs exceed the crossover rate.


D.You cannot determine which project should be accepted given the information provided.

Reference no: EM13255907

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