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 regular IRR is found by discounting the cash inflows at the cost of capital to find the present value (PV), then compounding this PV to find the IRR.
B. If a project's IRR is greater than the WACC, then its NPV must be negative.
C. To find a project's IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs.
D. To find a project's IRR, we must find a discount rate that is equal to the cost of capital.
E. A project's regular IRR is found by compounding the cash inflows at the cost of capital to find the terminal value (TV), then discounting this TV at the cost of capital.
Answer: C
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CIBERs are international business research and education efforts located at U.S. universities.
Answer the following statement true (T) or false (F)
Which of the following will be classified as a conversion cost?
A) cost of direct materials used B) depreciation on factory equipment C) salary of sales personnel D) depreciation on office furniture
Which of the following statements is not true:
A. Accounts receivable are classified as assets. B. Accounts receivable are increased by customer payments. C. Accounts receivable arise from credit sales. D. Accounts receivable are increased by billings to customers. E. Accounts receivable are held by a seller.
The Age Discrimination in Employment Act holds it illegal to discriminate in employment against:
a. persons under age 21 or over age 65 b. persons aged 40 and over c. women or minorities aged 40-65 d. women or minorities aged 40-70 e. women or minorities under age 21