A project’s regular IRR is found by compounding the cash inflows at theWACC to find the terminal value (TV), then discounting this TV at the WACCA project’s regular IRR is found by discounting the cash inflows at the WACCto find the present value (PV), then compounding this PV to find the IRRIf a project’s IRR is greater than the WACC, then its NPV must be negative
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Question 75 / 5 ptsWhich of the following statements is correct? Assume that the project beingconsidered has normal cash flows, with one outflow followed by a series ofinflows.The longer a project’s payback period, the more desirable the project isnormally considered to be by this criterion
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