Question: Select all the statements that are true. You must select all correct choices to earn credit. Question 6 options: If three projects are mutually exclusive,

Select all the statements that are true.

You must select all correct choices to earn credit.

Question 6 options:

If three projects are mutually exclusive, selecting the best requires rejecting all others, even if they are profitable

Three projects are independent. Their NPVs are:

A:$1,000; B:$400; and C:$100.

Only the first project (A) should be accepted.

The NPV profile shows how the NPV changes with different levels of the WACC

The NPV of a project does not change with the WACC

NPV implicitly assumes that the cash flows could be reinvested at a rate equal to the WACC

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