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Jennthejelly Jennthejelly
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A year ago
Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has an IRR of 10%, while Project B’s IRR is 16%. When the WACC is 7%, the projects have the same NPV. Given this information, which of the following statements is correct?


▸

If the WACC is 14%, Project A’s NPV will be lower than Project B’s.



▸

If the WACC is 8%, Project A’s NPV will be higher than Project B’s.



▸

If the WACC is 6%, Project B’s NPV will be higher than Project A’s.



▸

If the WACC is 9%, Project B’s NPV will be lower than Project A’s.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
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moyo966moyo966
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A year ago
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