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

question 31

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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Definitions:

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