18. Which of the following statements is true? select all that apply MIRR always

ID: 2620732 • Letter: 1

Question

18. Which of the following statements is true? select all that apply

MIRR always gives the same accept reject criteria as IRR

MIRR always gives the same accept reject criteria as NPV

IRR always gives the same accept reject criteria as NPV

MIRR, IRR, and NPV always give the same accept reject criteria

2. An all equity financed company has the lowest possible working average cost of capital (WACC).

MIRR always gives the same accept reject criteria as IRR

MIRR always gives the same accept reject criteria as NPV

IRR always gives the same accept reject criteria as NPV

MIRR, IRR, and NPV always give the same accept reject criteria

2. An all equity financed company has the lowest possible working average cost of capital (WACC).

True False

18)

NPV = PV of cash inflows - PV of cash flows

These PVs are calculated at required rate. If NPV is positive, project will be accepted.

IRR evaluates project in % form. If IRR is more than or equal to required rate project will be accepted.

Thus, both IRR and NPV gives same criteria.

Hence, correct option is "IRR always gives the same accept reject criteria as NPV."

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