Projects S and L Are Equally Risky,mutually Exclusive,and Have Normal

Multiple Choice

Projects S and L are equally risky,mutually exclusive,and have normal cash flows.Project S has an IRR of 15%,while Project L's IRR is 12%.The two projects have the same NPV when the WACC is 7%.Which of the following statements is CORRECT?

A) If the WACC is 10%,both projects will have positive NPVs.
B) If the WACC is 6%,Project S will have the higher NPV.
C) If the WACC is 13%,Project S will have the lower NPV.
D) If the WACC is 10%,both projects will have a negative NPV.
E) Project S's NPV is more sensitive to changes in WACC than Project L's.