Question: IS each statement True or False? All else constant and under perfect market efficiency, if a firm makes a surprise announcement to invest in a

IS each statement True or False?

  1. All else constant and under perfect market efficiency, if a firm makes a surprise announcement to invest in a project with a positive NPV, the firm's market cap should increase exactly by the project's NPV amount.
  2. The internal rate of return (IRR) is the discount rate that maximizes the NPV of a project.

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