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Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one cash outflow at t = 0
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one cash outflow at t = 0 followed by a series of positive cash flows. a. If a project's IRR is greater than its WACC, then its MIRR will be greater than the IRR. b. To find a project's MIRR, the textbook procedure compounds cash inflows at the WACC and then finds the discount rate that causes the PV of the terminal value to equal the initial cost. c. To find a project's MIRR, we compound cash inflows at the regular IRR and then find the discount rate that causes the PV of the terminal value to equal the initial cost. d. A project's MIRR is always less than its regular IRR. e. A project's MIRR is always greater than its regular IRR
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