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

question 3

True/False

An 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.

---

Definitions:

Achievement Motivation

A psychological concept involving an individual’s desire to meet standards of excellence and accomplish set goals.

Driving Habits

Patterns and behaviors demonstrated by individuals while operating motor vehicles, which can include aspects such as speed, adherence to traffic laws, and reactions to external stimuli.

Dispositional Optimism

A psychological attribute characterized by the general expectation that good things will happen in the future.

Academic Success

Academic success is achieving desired outcomes and goals in educational settings, often measured by grades, completion of degrees, or other academic achievements.