Increase in the Firm's WACC Will Decrease Projects' NPVs, Which

question 92

True/False

increase in the firm's WACC will decrease projects' NPVs, which could change the accept/reject decision for any potential project.However, such a change would have no impact on projects' IRRs.Therefore, the accept/reject decision under the IRR method is independent of the cost of capital.

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Definitions:

Extraverted Thinking Types

Personality types characterized by decision-making processes that focus on external criteria and logical reasoning.

Introverted Feeling Types

Individuals who primarily make decisions based on deeply held personal values and emotions; typically introspective, sensitive, and reserved in nature.

Society's Rules

The norms, laws, and regulations that govern behavior within a particular community or society.

Logical

Pertaining to or characterized by clear, sound reasoning and thought processes.