Assume a Project Has Normal Cash Flows

question 34

Multiple Choice

Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?

• A) a project's npv increases as the cost of capital declines.
• B) a project's mirr is unaffected by changes in the cost of capital.
• C) a project's regular payback increases as the cost of capital declines.
• D) a project's discounted payback increases as the cost of capital declines.
• E) a project's irr increases as the cost of capital declines.

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