If you assume that a project being considered has normal cash flows, with one outflow followed by a series of inflows, which statement would be correct? Question 11 options:

a) The lower the cost of capital used to calculate a project's NPV, the lower the calculated NPV will be.

b) If a project's NPV is less than zero, then its IRR must be less than the cost of capital.

c) A projects NPV is found by compounding the cash inflows at the IRR to find the terminal value (TV), then discounting the TV at the cost of capital.

d) The NPV of a relatively low-risk project should be found using relatively high cost of capital.