Question

Which one of the following indicates a project should be accepted? A. NPV < 0 B....

Which one of the following indicates a project should be accepted?

A. NPV < 0

B. IRR>WACC

C. IRR<WACC

D. NPV=1
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Homework Answers

Answer #1

Correct statement is B

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IRR is the internal rate on the investment.

WACC is weighted cost of capital, for project to be accepted, IRR must be greater than WACC.

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Feel free to comment if you need further assistance J

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