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

question 33

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 regular IRR is found by compounding the cash inflows at the WACC to find the present value (PV), then discounting the TV to find the IRR.
• B) If a project's IRR is smaller than the WACC, then its NPV will be positive.
• C) A project's IRR is the discount rate that causes the PV of the inflows to equal the project's cost.
• D) If a project's IRR is positive, then its NPV must also be positive.
• E) A project's regular IRR is found by compounding the initial cost at the WACC to find the terminal value (TV), then discounting the TV at the WACC.

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Definitions:

Physical Injury

Harm that affects the body, ranging from minor wounds to serious trauma, often a subject of legal consideration in personal injury cases.

Assault

An intentional act that causes another person to fear imminent bodily harm.

Battery

A criminal offense involving the unlawful physical acting upon a threat, distinct from assault which is the act of creating apprehension of such contact.

Intentionally Performed

Actions carried out with a conscious and deliberate intent to achieve a certain result.