Question: If a project being considered has normal cash flows, with one outflow followed by a series of inflows, which of the following statements is CORRECT?

If a project being considered has normal cash flows, with one outflow followed by a series of inflows, which of the following statements is CORRECT?

A If a project's NPV is greater than zero, then its IRR must be less than the WACC.

B If a project's NPV is greater than zero, then its IRR must be less than zero.

C The higher the WACC used to calculate the NPV, the lower the calculated NPV will be.

D A project's NPV is generally found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting the TV at the IRR to find its PV.

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