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Author Question: Projects S and L both have normal cash flows, and the projects have the same risk; hence, both are ... (Read 8 times)

Tb12162018

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Projects S and L both have normal cash flows, and the projects have the same risk; hence, both are evaluated with the same WACC, 11%. However, S has a higher IRR than L. Which of the following statements is correct?

Project L must have a lower NPV than Project S.


If Projects S and L have the same NPV at the current WACC, 11%, then Project S, the one with the higher IRR, would have a lower NPV if the WACC used to evaluate the projects declined.


If the WACC increases, then each project’s IRR will decrease.


If Project S has a positive NPV, then Project L must also have a positive NPV.



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Marked as best answer by Tb12162018 on Aug 7, 2023

khudija

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Tb12162018

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Reply 2 on: Aug 7, 2023
Gracias!


duy1981999

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Reply 3 on: Yesterday
:D TYSM

 

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