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Which of the following statements is incorrect? Select one: a. Unlike the regular payback method, the discounted payback method takes into account the time value
Which of the following statements is incorrect? Select one: a. Unlike the regular payback method, the discounted payback method takes into account the time value of money. b. Both the regular payback method and the discounted payback method tell us when we recover our investment. c. Other things equal, the discounted payback method takes a shorter time to breakeven than the regular payback method. d. Unlike the NPV method, the IRR method provides an estimate of the maximum cost of capital that a company can afford. e. The IRR method takes into account the cashflows beyond the payback year. Which of the following statements is CORRECT? Select one: a. Other things equal, the IRR of a project increases when the WACC decreases. Ob. Other things equal, the discounted payback period of a project increases when the WACC decreases. O c. Other things equal, the payback period of a project increases when the WACC decreases. O d. Other things equal, the MIRR of a project remains the same when the WACC decreases. e. Other things equal, the NPV of a project increases when the WACC decreases
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