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Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? A project's NPV increases as the WACC declines.
Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?
| A project's NPV increases as the WACC declines. | |
| A project's MIRR is unaffected by changes in the WACC. | |
| A project's regular payback increases as the WACC declines. | |
| A project's discounted payback increases as the WACC declines. | |
| A project's IRR increases as the WACC declines. |
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
