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Title: Which of the following statements is correct? Assume that the project being considered has normal ... Post by: teranine on Aug 15, 2023 Which of the following statements is correct? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. ▸ A project’s regular IRR is found by discounting the cash inflows at the WACC to find the terminal value (TV), then compounding this TV to find the IRR. ▸ To find a project’s IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project’s costs. ▸ If a project’s IRR is greater than the WACC, then its NPV is always negative. ▸ To find a project’s IRR, we must find a discount rate that causes the PV of the inflows to equal 0. Title: Re: Which of the following statements is correct? Assume that the project being considered has normal ... Post by: jtarinay on Aug 15, 2023 Content hidden
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