Assume a Project Has Normal Cash Flows

A projects discounted payback increases as the WACC declines. Assume a project has normal cash flows ie the initial cash flow is negative and all other cash flows are positive.

Net Present Value Npv Financial Strategies Budgeting Money Investing

Projects S and L are equally risky mutually exclusive and have normal cash flows.

. Assume that the project being considered has normal cash flows with one outflow followed by a series of inflows. The NPV method assumes that cash flows will be reinvested at the WACC while the IRR method assumes reinvestment at the IRR. Given this you should accept the project A if and only if the NPV is exactly equal to zero.

False - The NPV of the project is dependent on the cost of capital. Project S has an IRR of 15 while Project Ls IRR is 12. The two projects have normal cash flows an up-front cost followed by a series of positive cash flows the same risk and the same 10 percent WACC.

A project s MIRR is unaffected by changes in the WACC. Which of the following statements is most correct. The projects internal rate of return is 12 percent and its WACC is 10 percent.

Net present value method. If Project A has a higher IRR than Project B then Project A must also have a higher NPV. What is the NPV at 10 and 15.

A projects IRR is unaffected by changes in the WACC. A projects regular payback increases as the WACC declines. A projects NPV increases as the cost of capital declines.

Assume a project has normal cash flows that is the initial cash flow is negative and all other cash flows are positive. Answer A projects NPV is generally found by compounding the cash inflows at the WACC to find the terminal value TV then discounting the TV at the IRR to find its PV. Answered expert verified.

A project s regular payback. Project S has an IRR of 15 while Project Ls IRR is 12. BAll else equal a projects NPV increases as the cost of capital declines.

A projects NPV increases as the WACC declines. In other words there is an up-front cost followed over time by a series of positive cash flows. The projects MIRR is unaffected by changes in the WACC.

A project s NPV increases as the WACC declines. AAll else equal a projects IRR increases as the cost of capital declines. Which of the following statements is most correct.

C if the NPV is positive and reject it if the NPV is negative. All else equal which of the following statements is CORRECT. B All else equal a projects NPV increases as the cost of capital declines.

Assume that the project being considered has normal cash flows with one outflow followed by a series of inflows. If a project has normal cash flows and its IRR exceeds its cost of capital then the. Assume that the project being considered has normal cash flows with one outflow followed by a series of inflows.

However Project X has an IRR of 16 percent while Project Y has an IRR of 14 percent. Asked Aug 10 2019 in Business by abvasque. 2 Answers to Assume a project has normal cash flows.

Which of the following statements is most correct. The NPV method assumes that cash flows will be reinvested at the WACC while the IRR method assumes reinvestment at the IRR. A projects MIRR is unaffected by changes in the cost of capital.

Up to 25 cash back A proposed project has normal cash flows. Costs exceed its benefits. A project s IRR increases as the WACC declines.

The projects IRR increases as the WACC declines. Assume a project has normal cash flows. It can be more than one statement-All else equal a projects IRR increases as the cost of capital declines.

OLeary Lumber Company is considering two mutually exclusive projects Project X and Project Y. In this method cash inflows from the discounted present value are subtracted from the initial investment. All else equal which of the following statements is CORRECT.

Assume a project has normal cash flows. Internal rate of return will exceed its required rate of return. All else equal a projects NPV increases as the cost of capital declines.

All else equal which of the following statements is CORRECT. All else equal which of the following statements is correct. A projects MIRR increases as the WACC declines.

The two projects have the same NPV when the WACC is 7. Asked Jul 30 2019 in Business by Beenx. All else equal a projects IRR increases as the cost of capital declines.

Assume a project has normal cash flows i. A projects regular payback increases as the WACC declines. If a project has normal cash flows and its IRR exceeds its cost of capital then the projects NPV must be positive.

Assume a project has normal cash flows. A projects IRR increases as the WACC declines. All else equal which of the following statements is CORRECT.

The projects regular payback increases as the WACC declines. Assume a project has normal cash flows. Project S has an IRR of 15 while Project Ls IRR is 12.

Assume a project has normal cash flows that is the initial cash flow is negative and all other cash flows are positive. In the given case the initial cash flow is negative and the other cash annual flows are. The two projects have the same NPV when the WACC is 7.

If the sum comes in positive than the project would be accepted otherwise not be beneficial to the company and therefore the project should be rejected. The NPV method assumes that cash flows will be reinvested at the WACC while the IRR method assumes reinvestment at the IRR. Projects S and L are equally risky mutually exclusive and have normal cash flows.

NPV at 10 WACC -10000 1000011 1000011². This means that if the WACC is lower the NPV will be higher because cash flow will not be discounted as much and if the WACC keeps going lower the NPV keeps rising. Which of the following statements is most correct.

Question 34 25 points Projects S and L are equally risky mutually exclusive and have normal cash flows. A projects discounted payback increases as the WACC declines. The projects NPV increases as the WACC declines.

For instance assume a company invested 10000 and will get cash inflows of 10000 for 2 years. Assume a project has normal cash flows and a positive non-zero. If Project A has a higher IRR than Project B then Project A must also have a higher NPV.

E the initial cash flow is negative and all other cash flows are positive. A All else equal a projects IRR increases as the cost of capital declines. A projects regular payback increases as the cost of capital declines.

B only if the NPV is equal to the initial cash flow. Assume a project has normal cash flows. Profitability index will be less than 1.

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