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You are evaluating a potential investment which has an IRR of 8%. The company WACC, which is used to compute NPV, is 10%. The companys
You are evaluating a potential investment which has an IRR of 8%. The company WACC, which is used to compute NPV, is 10%. The companys reinvestment rate, used to compute MIRR is 11%. Which of the following is true? a. The MIRR is higher than 8%. The NPV is negative. b. The MIRR is lower than 8%. The NPV is negative. c. The MIRR is higher than 8%. The NPV is positive. d. The MIRR is lower than 8%. The NPV is positive.
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