Graph the mutually exclusive projects' NPV profiles. Which of the following statements is most FALSE?...

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Graph the mutually exclusive projects' NPV profiles. Which of the following statements is most FALSE? The NPV profiles for A and B cross at an NPV of $1,487.01. At any cost of capital between 0% and the IRR for B, both NPV and IRR choose Project B as the better project. The cost of capital of 12 percent has to be less than the crossover rate. The crowower is caused by NPV and IRR using different reinvestment rate assumptions Project A's NPV profile intercepts the vertical axis at $3,200. Use the following information to answer the next 2 questions: Osborn & Adkins is evaluating two mutually exclusive projects with the following cash flows. The firm's cost of capital is 12 percent. Year Project A Project B O (5000) (5000) a 1 3100 1400 2800 2700 WN 2300 4600 Graph the mutually exclusive projects' NPV profiles. Which of the following statements is most FALSE? o The NPV profiles for A and B cross at an NPV of $1,487.01. O At any cost of capital between 0% and the IRR for B, both NPV and IRR choose Project B as the better project The cost of capital of 12 percent has to be less than the crossover rate. The crossover is caused by NPV and IRR using different reinvestment rate assumptions: O Project A's NPV profile intercepts the vertical axis at $3,200

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