Question: Question 7 3 1 pts FIN 3 7 0 - 6 0 0 4 / Which of the following statements is CORRECT? Assume that the
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pts
FIN Which of the following statements is CORRECT? Assume that the project being considered has nomal cash flows, with one outflow followed by a series of inflows.
To find a project's IRR, we must solve for the dicount rate that causes the PV of the inflows fo equal the PV of the preject's costs.
A profectis reguar ins is found br compounding the canh infows at the WACC io find the termihul value TVh then decountine this TV at the WMCC
To And a proiects RR we mort find a discount rate that is equal to the WACC.
A project's regular IRR is found by dicounting the cash inflows at the WACC to tond the presene value PVI, then compounding this PV to find the IRR.
Fa profect's issi is greater than the WMCC then its NPV must be nepative.
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