Which of the Following Statements Is CORRECT? Assume That the Project

question 87

Multiple Choice

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows,with one outflow followed by a series of inflows.

• A) A project's NPV is generally found by compounding the cash inflows at the WACC to find the terminal value (TV),then discounting the TV at the IRR to find its PV.
• B) The higher the WACC used to calculate the NPV,the lower the calculated NPV will be.
• C) If a project's NPV is greater than zero,then its IRR must be less than the WACC.
• D) If a project's NPV is greater than zero,then its IRR must be less than zero.
• E) The NPVs of relatively risky projects should be found using relatively low WACCs.

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Definitions:

Female Primate

A member of the primate order distinguished by its female reproductive features, including females from species like apes, monkeys, and humans.

Estrus

In some primate females, the time of sexual receptivity during which ovulation is visibly displayed.

Impregnation

The process of fertilizing an egg, leading to pregnancy.

Polyandrous Bond

A relationship structure where one female forms a mating relationship with more than one male.