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Need help reviewing Finance homework... For a given set of cash flows and required rate of return (k), if NPV > 0, then you should

Need help reviewing Finance homework...

  • For a given set of cash flows and required rate of return (k), if NPV > 0, then you should expect IRR > hurdle rate.
  • TRUE or FALSE - my answer TRUE
  • Taxes play no role in determining the weighted average cost of capital.
  • TRUE or FALSE - my answer TRUE
  • If a firm needs to borrow above a critical amount identified by a lender, there is no need to change the WACC.
  • TRUE or FALSE - my answer FALSE
  • The discount rate that causes the net present value of a project to equal zero is called the modified internal rate of return.
  • TRUE or FALSE - my answer TRUE
  • The weights used to calculate the WACC represent the percentages of the total capital represented by the firm's debt and equity.
  • TRUE or FALSE - my answer FALSE
  • The MCC schedule is more or less a supply curve for a company's capital resources.
  • TRUE or FALSE - my answer FALSE

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