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32264 32264
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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.


▸

The higher the WACC used to calculate the NPV, the higher the calculated NPV will be.



▸

If a project’s NPV is greater than zero, then its IRR must be less than the WACC.



▸

If a project’s NPV is greater than zero, then its IRR must be less than zero.



▸

The NPVs of relatively risky projects should be found using relatively high WACCs.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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thevoicexxxthevoicexxx
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A year ago
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32264 Author
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A year ago
You make an excellent tutor!
deathwing
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Yesterday
Smart ... Thanks!
jasonbourne
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2 hours ago
Thank you, thank you, thank you!
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