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Which of the following statements is incorrect? Select one: a. Both the IRR and NPV methods tell us when we recover our investment. b. Unlike
Which of the following statements is incorrect? Select one: a. Both the IRR and NPV methods tell us when we recover our investment. b. Unlike the NPV method, the IRR method provides an estimate of the maximum cost of capital that a company can afford. c. Other things equal, the discounted payback method takes a longer time to breakeven than the regular payback method. d. Neither the discounted payback method nor the regular payback method takes into account the cashflows beyond the payback year e. Unlike the regular payback method, the discounted payback method takes into account the time value of money. Which of the following statements is CORRECT? Select one: 0 a. Other things equal, the payback period of a project increases when the WACC decreases. b. Other things equal, the NPV of a project increases when the WACC increases. c. Other things equal, the IRR of a project remains the same when the WACC decreases. d. Other things equal, the MIRR of a project remains the same when the WACC decreases. e. Other things equal, the discounted payback period of a project increases when the WACC decreases
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