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Homework answers / question archive / Assume a project has normal cash flows
Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?
| a. |
A project's MIRR increases as the WACC declines. |
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| b. |
A project's NPV decreases as the WACC declines. |
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| c. |
A project's IRR is unaffected by changes in the WACC. |
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| d. |
A project's discounted payback increases as the WACC declines. |
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| e. |
A project's regular payback increases as the WACC declines. |
A project's IRR is unaffected by changes in the WACC.
WACC has not effect on IRR. IRR is calculated independent of WACC. NPV is affected by changes in WACC.
