Question 1 Which of the following statements is correct about a project with nor

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Question 1 Which of the following statements is correct about a project with normal cash flows? Not yet answered Select one: Points out of 10.0 O a. The project's NPV increases as WACC declines b. The project's IRR increases as WACC declines O C.The project's MIRR is unaffected by changes in WACC O d. The project's Payback Period increases as WACC declines Remove lag Question 2 Not ye using the net Present Value method of analyzing a capital project. which of the following would make the project to look better? Select one Points out of 10.0 a. Including the effect of federal tax rate reductions b. Using a higher discount rate CAdjusting for the project's higher than average risk question d. Including terminal cash flows related to relocating key personnel e. None of the above would make the project attractive up

Explanation / Answer

1. The project’s NPV increases as WACC declines

2. Including the effect of federal tax rate reductions

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