Question: Assume the project under consideration has normal cash flows, which of the following is CORRECT? If a project's NPV is greater than zero, then its
Assume the project under consideration has normal cash flows, which of the following is CORRECT? If a project's NPV is greater than zero, then its IRR must be greater than the WACC. If a project's NPV is less than zero, then its IRR must be greater than zero. A project's NPV is found by compounding the cash inflows at the IRR to find the terminal value (TV), then discounting the TV at the WACC. The higher the WACC used to calculate it, the higher the calculated NPV will be
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