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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. A projects regular IRR is found by compounding the initial cost at the WACC to find the terminal value (TV), then discounting the TV at the WACC. b. A projects regular IRR is found by compounding the cash inflows at the WACC to find the present value (PV), then discounting the TV to find the IRR. c. If a projects IRR is simaller than the WACC, then its NPV will be positive. d. If a projects IRR is positive, then its NPV must also be positive. e. A projects IRR is the discount rate that causes the PV of the inflows to equal the projects cost
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