Question
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows with one outflow followed by a series of
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows with one outflow followed by a series of inflows.
a. A projects NPV is generally found by compounding the cash inflows at the Hurdle Rate to find the terminal value (TV), then discounting the TV at the IRR to find its PV.
b. The higher the Hurdle Rate used to calculate the NPV, the lower the calculated NPV will be.
c. If a projects NPV is greater than zero, then its IRR must be less than the Hurdle Rate.
d. If a projects NPV is greater than zero, then its IRR must be less than zero.
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Options Trading For Beginners How To Generate Predictable Income And Make A Living Without Taking Big Risks Even If You Re A Complete Beginner
Authors: Greg Middleton
1st Edition
979-8866955046
