b. The payback method is gencrally regarded by academics as being the best single evaluating capital budgeting projects method for c. The discounted for evaluating capital badgeting projects. payback method is generally regarded by academics as being the best single method nct present valuc method (NPV) is gencrally regarded by academics as bcing the best single method for evaluating ing capital bodgcting projects e. The modified internal rate of return method (MIRR) is gencrally best single mcthod for evaluating capital budgeting projects. by acades as bcing the 17. Which of the following statements is CORRECT? a. For a project to have more than one IRR, then both IRRs must be greater than the WACC. b. If two projects are mutually exclusive, then they are likely to have multiple IRRs e. If a project is independent, then it cannot have multiple IRRs. d. Multiple IRRs can occur only if the signs of the cash flows change more than once. e. Ir a project has two IRRs, then the smaller one is the one that is most relevant, and it should be accepted and relied upon. which of the following statements is CORRECT? Asume that the projoect being considered has nomal cash flows, with one outflow followed by a series of inflows. a. If Project A has a higher IRR than Project B, then Project A must have the lower NPV. b. If Project A has a higher IRR than Project B, then Project A must also have a higher NPV. c. The IRR calculation implicitly assumes that all cash flows are reinvested at the WACC. d. The IRR calculation implicitly assumes that cash flows are withdrawn from the business rather e. Ifa project has normal cash flows and its IRR exceeds its WACC, then the project's NPV must be being reinvested in the business. positive. Which of the following statements is CORRECT? a. The NPV method was once the favorite of academics and business executives, but today most 19. authorities regard the MIRR as being the best indicator of a project's profitability. b. If the cost of capital declines, this lowers a project's NPV c. The NPV method is regarded by most academics as being the best indicator of a project's profitability, hence most academics recommend that firms use only this one method and disregard other methods. d. A project's NPV depends on the total amount of cash flows the project produces, but because the cash flows are discounted at the WACC, it does not matter if the cash flows occur carly or late in the project's life c. The NPV and IRR methods may give different recommendations regarding which of two mutually exclusive projects should be accepted, but they always give the same recommendation regarding the acceptability of a normal, independent project