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.

Understand the concept of homemade dividend policy and its implications for investors.

Explain how companies decide on dividend policies in relation to their growth strategies and investor clientele.

Distinguish between key dates related to dividends and their relevance for shareholders.

Understand the concept of deep and surface structures in language.

---

Definitions:

Energy-efficiency

The goal or practice of reducing the amount of energy required to provide products and services, often to conserve resources and reduce environmental impact.

Greenhouse Gases

Gases in the Earth's atmosphere that trap heat, contributing to global warming, including carbon dioxide, methane, and nitrous oxide.

Bioplastic

A type of plastic material derived from renewable biomass sources, such as vegetable fats, oils, corn starch, or microbiota, designed to reduce reliance on fossil fuels.

Renewable Energy

Energy from sources that are naturally replenishing and sustainable over time, such as solar, wind, and hydroelectric power.