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tsk tsk
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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.


▸

If a project has normal cash flows and its IRR exceeds its WACC, then the project’s NPV must be positive.



▸

If Project A has a lower IRR than Project B, then Project A must also have a lower NPV.



▸

The IRR calculation implicitly assumes that all cash flows are reinvested at the risk-free rate.



▸

If Project A has a lower IRR than Project B, then Project A must have the higher NPV.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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varelaj326varelaj326
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A year ago
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tsk Author
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A year ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
big_larry_samp
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Yesterday
Thanks
patyfeitosa
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2 hours ago
Smart ... Thanks!
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