Question: Other things held constant, an increase in a project's cost of capital, WACC), will result in a decrease in the project's IRR True or false?


"Other things held constant, an increase in a project's cost of capital, WACC), will result in a decrease in the project's IRR" True or false? Select one: a. False O b. True "Compared to the valuations of debt and preferred stock, the valuation of common stock suffers most from information asymmetry problem due to the uncertainty in the growth rate, g" True or false? Select one: O a False stion b. True "Including sunk costs overestimates the project's NPV, which may lead to an incorrect decision." True or false? Select one: O a False b. True In calculating the operating cash flow, depreciation is first deducted to calculate the taxes but is then added back because it is not a cash item." True or false? Select one: a. True O b. False "For a project with normal cash flows, the NPV and IRR criteria always lead to the same accept/reject decision: If the NPV says accept, so would the IRR, and vice versa." True or false? Select one: O a. True b. False o the NPV method
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