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Author Question: Which of the following statements is correct? (Read 44 times)

am7272

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Which of the following statements is correct?

If two projects have the same cost, and if their NPV profiles cross in the upper right quadrant, then the project with the higher IRR probably has less of its cash flows coming in the later years.


If two projects have the same cost, and if their NPV profiles cross in the upper right quadrant, then the project with the higher IRR probably has more of its cash flows coming in the later years.


The NPV and IRR methods both assume cash flows can be reinvested at the WACC. However, the MIRR method assumes reinvestment at the IRR.


For a project with normal cash flows, any change in the WACC will change both the NPV and the IRR.



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Marked as best answer by am7272 on Aug 7, 2023

lactosetheintolerant

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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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am7272

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


lkanara2

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Reply 3 on: Yesterday
Excellent

 

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