Which of the following statements is correct assume

This preview shows page 7 - 10 out of 10 pages.

Question: Which of the following statements is correct? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.
AIf Project A has a higher IRR than Project B, then Project A must have the lower NPVBIf Project A has a higher IRR than Project B, then Project A must also have a higher NPVCThe IRR calculation implicitly assumes that all cash flows are reinvested at the WACCDThe IRR calculation implicitly assumes that cash flows are withdrawn from the business rather than being reinvested in the businessEIf a project has normal cash flows and its IRR exceeds its WACC, then the project’s NPV must be positive
Question: Which of the following should not influence a firm’s dividend policy decision?
Question: Which of the following statements is correct?
Question:
Which of the following statements is correct?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture