1

Assume a project has normal cash flows (i.e., the initial cash flow is negative, and all other cash flows are positive). Which of the following statements are correct? Note: There can be more than one correct answer.

a.

All else equal, a project's NPV increases as the WACC declines.

b.

All else equal, a project's IRR increases as the WACC declines.

c.

All else equal, a project's MIRR is unaffected by changes in the WACC.

d.

All else equal, a project's Payback Period (DPP) decreases as the WACC increases.

e.

All else equal, a project's Discounted Payback Period (DPP) increases as the WACC increases.