What Decision Should Be Made on a Project of Above-Average

question 11

Multiple Choice

What decision should be made on a project of above-average risk if the project's IRR exceeds the WACC?

• A)accept the project; NPV is positive.
• B)reject the project; NPV is negative.
• C)decide after discounting at the IRR.
• D)decide after discounting at an appropriate rate.

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