Question: Other things being constant, when a normal projects NPV = 0, which of the following is correct regarding the projects IRR and the companys WACC?
Other things being constant, when a normal projects NPV = 0, which of the following is correct regarding the projects IRR and the companys WACC?
Projects IRR = the WACC.
Projects IRR < the WACC.
Projects IRR > the WACC.
Projects IRR = 0.
Which of the following statements is more correct concerning a normal projects WACC, NPV and IRR?
If a projects NPV is negative, then its IRR must be less than the WACC.
The lower the WACC, the lower the NPV.
If a projects IRR is positive, then its NPV must be positive too.
The higher the WACC, the higher the IRR.
Which of the following statements about a normal project is correct?
Either NPV or IRR can be used to evaluate the project.
The projects IRR cannot be determined without knowing the companys WACC.
The projects NPV cannot be determined without knowing the projects IRR.
The IRR method does not consider the time value of money.
Other things being equal, a companys WACC will most likely _________ when the company pays more preferred stock dividends.
stay the same
increase
decrease
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