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teranine teranine
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A year ago
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.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
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jtarinayjtarinay
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A year ago
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teranine Author
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A year ago
Thank you, thank you, thank you!
sakoon
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Helped a lot
AlahuKakpar
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This calls for a celebration Person Raising Both Hands in Celebration
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