You Are Using a Net Present Value Profile to Compare

Multiple Choice

You are using a net present value profile to compare two projects.At the point where the net present values of the two projects intersect,the:

A) net present value of each project is equal to zero
B) internal rate of return is equal to the required rate of return
C) relevant discount rate is called the crossover rate
D) internal rate of return of each project is equal to zero
E) the accounting rate of return of each project is equal to zero