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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 If a projects IRR is greater than its WACC, then the MIRR will be less than the IRR. b A projects MIRR is always greater than its regular IRR. c To find a projects MIRR, we compound cash inflows at the IRR and then discount the terminal value back to t at the WACC. d If a projects IRR is greater than its WACC, then the MIRR will be greater than the IRR. e A projects MIRR is always less than its regular IRR.
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 If a projects IRR is greater than its WACC, then the MIRR will be less than the IRR.
b A projects MIRR is always greater than its regular IRR.
c To find a projects MIRR, we compound cash inflows at the IRR and then discount the terminal value back to t at the WACC.
d If a projects IRR is greater than its WACC, then the MIRR will be greater than the IRR.
e A projects MIRR is always less than its regular IRR.
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
1259536351, 978-1259536359
