Projects X and Y are equally risky, mutually exclusive, and have normal cash flows.
Project X has an IRR of 16%, while Project Y's IRR is 14%. The two projects have the
same NPV when the cost of capital is 11%. Which of the following statements is
CORRECT?
A) If the cost of capital is 10%, Project X will have the higher NPV.
B) If the cost of capital is 13%, Project X will have the lower NPV.
C) If the cost of capital is 18%, both projects will have a negative NPV.
D) Project X's NPV is more sensitive to changes in cost of capital than Project
Y's.
E) The crossover rate between the two projects must be between 14% and
16%.