Which of the Following Statements Is CORRECT? Assume That All

question 32

Multiple Choice

Which of the following statements is CORRECT? Assume that all projects being considered have normal cash flows and are equally risky.

• A) If a project's IRR is equal to its WACC,then,under all reasonable conditions,the project's NPV must be negative.
• B) If a project's IRR is equal to its WACC,then under all reasonable conditions,the project's IRR must be negative.
• C) If a project's IRR is equal to its WACC,then under all reasonable conditions the project's NPV must be zero.
• D) There is no necessary relationship between a project's IRR,its WACC,and its NPV.
• E) When evaluating mutually exclusive projects,those projects with relatively long lives will tend to have relatively high NPVs when the cost of capital is relatively high.

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Professional Development

The continuous process of acquiring new knowledge, skills, and abilities that improve an individual's job performance and career prospects.

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The ability to accomplish a task or job with a minimum expenditure of time and resources.

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The practice of establishing uniform procedures and criteria for tasks and operations within an organization to increase efficiency and consistency.

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A management style where a supervisor closely oversees and controls the work of their subordinates.