Project Alpha Has an Internal Rate of Return (IRR)of 15

Multiple Choice

Project Alpha has an internal rate of return (IRR) of 15 percent.Project Beta has an IRR of 14 percent.Both projects have a required return of 12 percent.Which of the following statements is MOST correct?

A) Both projects have a positive net present value (NPV) .
B) Project Alpha must have a higher NPV than Project Beta.
C) If the required return were less than 12 percent, Project Beta would have a higher IRR than Project Alpha.
D) Project Beta has a higher profitability index than Project Alpha.