Two Mutually Exclusive Projects Produce the Same Positive NPV at a Discount

Multiple Choice

Two mutually exclusive projects produce the same positive NPV at a discount rate of 11.34 percent.Both projects have 4-year lives.Project A has larger cash flows than Project B in the first two years.Given this information,you know that:

A) it makes no difference which project you accept as long as the discount rate does not exceed 11.34 percent.
B) Project A should always be preferred.
C) one project will be preferred at rates less than 11.34 percent and the other will be preferred at higher rates.
D) Project B must require a smaller investment than Project A at Time 0.
E) Project B should only be accepted if the discount rate is 11.34 percent.