Question: Force Completion Once Marted, this teet must be comp o nering. Do not leave the test before clicking Save and submit Question Completion Status: Moving
Force Completion Once Marted, this teet must be comp o nering. Do not leave the test before clicking Save and submit Question Completion Status: Moving to another question will save this response Question 1 of 3 Question 1 5 points Saved Projects A and B both have normal cash flows. In other words, there is an up-front cost follow ng by a series of positive cash flows. Both projects have the same risk and a WACC equal to 10 percent. However, Project A has a higher internal rate of return than Project B. Assume that changes in the WACC have no effect on the projects' cash flow levels. Which of the following statements is most COTECT? O a Project A must have a higher net present value than Project B. Ob. If Project A has a positive NPV, Project B must also have a positive NPV. c. If Project A's WACC falls, its internal rate of return will increase Od. If Projects A and B have the same NPV at the current WACC, Project B would have a higher NPV if the WACC of both projects was lower Os Statements and care correct. Question 1 of 23 > Moving to another question will save this response > >>
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
