Assume a project has normal cash flows All else equal, which of the following statements is CORRECT (WACC is the weighted average cost of capital, the financing rate, or discount rate) A The projects IRR increases as the WACC declines B The projects NPV increases as the WACC declines C The projects regular payback increases as the WACC declines D The projects IRR decreases as the WACC declines E none of the above is correct

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Question: Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? (WACC is the weighted average cost of capital,

Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? (WACC is the weighted average cost of capital, the financing rate, or discount rate)

	A.	The projects IRR increases as the WACC declines.
	B.	The projects NPV increases as the WACC declines.
	C.	The projects regular payback increases as the WACC declines.
	D.	The projects IRR decreases as the WACC declines.
	E.	none of the above is correct.

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