You Are Considering Two Mutually Exclusive Projects with the Following

Multiple Choice

You are considering two mutually exclusive projects with the following cash flows. Will your choice
between the two projects differ if the required rate of return is 8 percent rather than 11 percent? If
so, what should you do?

A) Yes; Select A at 8 percent and B at 11 percent.
B) Yes; Select B at 8 percent and A at 11 percent.
C) Yes; Select A at 8 percent and select neither at 11 percent.
D) No; Regardless of the required rate, project A always has the higher NPV.
E) No; Regardless of the required rate, project B always has the higher NPV.