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What decision should be made on a project with above-average market risk? Multiple Choice a. Accept if the cash flows discounted at the WACC have
What decision should be made on a project with above-average market risk? Multiple Choice
a. Accept if the cash flows discounted at the WACC have a positive NPV.
b. Discount the cash flows at the IRR and accept if NPV is positive.
c. Accept if the IRR is greater than the WACC.
d. Use a higher discount rate than the WACC to reflect the projects risk and accept if NPV is positive at this higher discount rate.
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