Question: Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? a. A projects NPV decreases as the WACC

Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?

a. A projects NPV decreases as the WACC declines.

b. A projects MIRR is generally unaffected by changes in the WACC.

c. A projects profitability index increases as the WACC declines.

d. A projects discounted payback decreases as the WACC increases.

e. A projects IRR increases as the WACC declines.

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