Question: IRR method is based on the assumption that projects cash flows are reinvested at the projects cost of capital. True False An increase in the

IRR method is based on the assumption that projects cash flows are reinvested at the projects cost of capital.

True

False

An increase in the firms WACC will decrease projects NPVs, which could change the accept/reject decision for any potential project.

True

False

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!