Which of the following statements is correct?
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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.
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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.
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The NPV and IRR methods both assume cash flows can be reinvested at the WACC. However, the MIRR method assumes reinvestment at the IRR.
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For a project with normal cash flows, any change in the WACC will change both the NPV and the IRR.