Question
Consider a project with negative cash flow in Year 0, positive cash flows after Year 0. If the company felt that the risk of the
Consider a project with negative cash flow in Year 0, positive cash flows after Year 0. If the company felt that the risk of the project was less than original estimates, what will happen to NPV and IRR of this project?
Question 7 options:
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| NPV will be lower and IRR will stay the same |
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| NPV will be higher and IRR will stay the same |
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| NPV will be higher and IRR will be lower |
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| IRR will be higher and NPV will be lower |
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
8th Edition
1088
