This topic contains a solution. Click here to go to the answer

Author Question: Projects S and L both have normal cash flows, and the projects have the same risk; hence, both are ... (Read 68 times)

Tb12162018

  • Full Member
  • ***
  • Posts: 134
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Tb12162018 on Aug 7, 2023

khudija

  • Full Member
  • ***
  • Posts: 171
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.
Answer Preview
Only 58% of students answer this correctly




Tb12162018

  • Member
  • Posts: 134
Reply 2 on: Aug 7, 2023
Gracias!


kusterl

  • Member
  • Posts: 315
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

For a complete list of videos, visit our video library