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:
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If three projects are mutually exclusive, selecting the best requires rejecting all others, even if they are profitable
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| Three projects are independent. Their NPVs are: A:$1,000; B:$400; and C:$100. Only the first project (A) should be accepted. |
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The NPV profile shows how the NPV changes with different levels of the WACC
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The NPV of a project does not change with the WACC
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NPV implicitly assumes that the cash flows could be reinvested at a rate equal to the WACC
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