Assume that project being considered has normal cash flows

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Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

a. A project's NPV is found by compounding the cash inflows at the IRR to find the terminal value (TV), then discounting the TV at the WACC.

b. If a project's NPV is greater than zero, then its IRR must be less than zero.     

c. The NPV of a relatively low-risk project should be found using a relatively high WACC.              

d. The lower the WACC used to calculate it, the lower the calculated NPV will be.             

e. If a project's NPV is less than zero, then its IRR must be less than the WACC.

Reference no: EM13814636

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