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

question 71

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 found by compounding the cash inflows at the IRR to find the terminal value (TV),then discounting the TV at the WACC.
• B) The lower the WACC used to calculate it,the lower the calculated NPV will be.
• C) If a project's NPV is less 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 NPV of a relatively low-risk project should be found using a relatively high WACC.

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Definitions:

Manifest Destiny

A 19th-century belief that the expansion of the U.S. across the American continents was both justified and inevitable.

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A German physician, naturalist, physiologist, and anthropologist known for his influential work in the classification of human races.

Typology of Humanity

A classification system that categorizes humans into types, often based on physical, social, or psychological characteristics.

Racial Taxonomies

The classification of human beings into distinct racial groups based on physical characteristics, cultural history, or social identity, often used historically for discriminatory purposes.