Question
Projects A and B are equally risky, mutually exclusive, and have normal cash flows. Project A has an IRR of 12%, while Project Bs IRR
Projects A and B are equally risky, mutually exclusive, and have normal cash flows. Project A has an IRR of 12%, while Project Bs IRR is 10%. The two projects have the same NPV when the WACC is 7%. Which of the following statements is CORRECT?
A. If the WACC is 10%, both projects will have positive NPVs. B. If the WACC is 11%, Project B will have the higher NPV. C. If the WACC is 13%, Project A will have the lower NPV. D. If the WACC is 14%, both projects will have a negative NPV.
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
9781292016924
