Hide answers a a projects npv is generally found by

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<< HIDE ANSWERS A A project’s NPV is generally found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting the TV at the IRR to find its PV. The higher the WACC used to calculate the NPV, the lower the calculated NPV will be. If a project’s NPV is greater than zero, then its IRR must be less than the WACC. If a project’s NPV is greater than zero, then its IRR must be less than zero. The NPVs of relatively risky projects should be found using relatively low WACCs. B C D E
QUESTION: 13 [QUESTION BANK ID: 7358] CORRECT In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or \$8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 yen per dollar, what would the car be selling for today in U.S. dollars? TYPE: MULTIPLE CHOICE
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