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:

Observable Culture

The visible elements of an organization's culture, such as behaviors, language, rituals, and symbols, that can be seen and experienced by members and outsiders.

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Fundamental principles or values that are deeply ingrained in an individual's or organization's identity and guide behavior and decision-making.

Environmental Concerns

Issues related to the impact of human activity on the planet, including pollution, climate change, and resource depletion.

Core Culture

Represents the fundamental beliefs, values, and practices that are shared by members of an organization, shaping its identity and behaviors.