If the IRR of a project is less than the WACC, the projects NPV: a. will be greater than $0. b. will be equal to $0. c. will be less than $0. d. may be positive, negative, or equal to $0.

Which of the following statements regarding IRR is correct? a. You must know the WACC to calculate a projects IRR. b. A projects IRR is not dependent on the timing of the projects cash flows, only their magnitude. c. Any independent project with an IRR greater than zero should be accepted. d. Any independent project with an IRR greater than the WACC should be accepted.

Which capital budgeting method(s) assume(s) that a projects cash inflows are reinvested at the projects WACC? a. NPV. b. IRR. c. MIRR. d. Both a and c.