In an Assessment of the Internal Rate of Return (R)

Multiple Choice

In an assessment of the internal rate of return (r) of two projects the following results are obtained: r is 8% for Project A and 12% for Project B. What decisions should be followed if the opportunity cost of capital is 10%?

A) Accept A and reject B
B) Reject A and accept B
C) Reject both projects
D) Accept both projects