Question 7: Assume a project has normal cash flows. All else equal, which of the

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Question 7: Assume a project has normal cash flows. All else equal, which of the following statements is CORT6 points) A) A project's IRR increases as the WACC declines (B) A project's NPV increases as the WAcc derlines (C) A project's MIRR is unaffecti Screen Shot 2017-08-27 at 8.49.49 PM (D) A project's regular payback increases as the WACC declines (E) A project's discounted payback increases as the WACC declines Question 8: Which of the following statements is CORRECT? (6 points) A) The internal rate of return method (IRR) is generally regarded by academics as being the best (B) The payback method is generally regarded by academic as being the best single method for (C) The discounted payback method is generally regarded by academic as being the best single (D) The net present value method (NPV) is generally regarded by academic as being the best single method for evag capital budgeting projects evaluating capital budgeting projects method for evaluating capital budgeting projects single method for evag capital budgeting projects The modified internal rate of return method (MIRR) is generally regarded by academic as being the best single method for evaluating capital budgeting projects (E)

Explanation / Answer

7.

(B) A project's NPV increases as the WACC declines.

the above is answer

because WACC is a discounting factor

8.

(D) The net present value method (NPV) is generally regarded by academics as being the best single method for evaluating capital budgeting projects.

the above is answer

because NPV is direct method that tells if value will rise or decline.

the above all are answers

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