Question
Which statement about a projects IRR is correct? Assume that all projects being considered have normal cash flows and are equally risky. There is no
Which statement about a projects IRR is correct? Assume that all projects being considered have normal cash flows and are equally risky.
There is no necessary relationship between a projects IRR, its WACC, and its NPV. | ||
If a projects IRR is equal to its WACC, then, under all reasonable conditions, the projects IRR must be zero. | ||
If a projects IRR is less than the WACC, then, under all reasonable conditions, the projects NPV must be negative. | ||
If a projects IRR is equal to its WACC, then, under all reasonable conditions, the projects NPV must be greater than zero. |
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