Projects S and L Both Have Normal Cash Flows,and the Projects

question 55

Multiple Choice

Projects S and L both have normal cash flows,and the projects have the same risk,hence both are evaluated with the same WACC,10%.However,S has a higher IRR than L.Which of the following statements is CORRECT?

• A) Project S must have a higher NPV than Project L.
• B) If Project S has a positive NPV,Project L must also have a positive NPV.
• C) If the WACC falls,each project's IRR will increase.
• D) If the WACC increases,each project's IRR will decrease.
• E) If Projects S and L have the same NPV at the current WACC,10%,then Project L,the one with the lower IRR,would have a higher NPV if the WACC used to evaluate the projects declined.

Understand the extraterritorial application of certain country’s laws and its impact on international trade.

Grasp the concept of NAFTA and rules of origin in trade agreements.

Understand the importance of knowing competitors’ prices and anticipating market movements.

Learn the factors that influence demand and how these factors are interrelated.

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Microorganisms or viruses that cause disease in hosts, distinguished by their precise identification and characteristics.

Infectious Illnesses

Diseases caused by organisms such as bacteria, viruses, fungi, or parasites that can be spread, directly or indirectly, from one person to another.

Heart Disease

A range of disorders affecting the heart, including coronary artery disease, heart attacks, heart failure, and arrhythmias.

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The ratio of deaths to the population of a particular area during a specific period, typically expressed per 1000 or 100,000 individuals per year.