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1)which of the following statement is true? A)When using trail- and - error to find the IRR, if a discount rate of 8% result in
1)which of the following statement is true?
A)When using trail- and - error to find the IRR, if a discount rate of 8% result in a negative NPV, the IRR would below 8%
B)Projects with NPV's greater than zero would have IRRs that below the cost of capital.
C)Ceteris paribus, a higher cost of capital would increase a project's NPV.
Capital budgeting deals with how much debt and how much equity a firm should use
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