Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? a. A project's NPV increases as the cost of capital declines. b. A project's MIRR is unaffected by changes in the cost of capital. c. A project's regular payback increases as the cost of capital declines. d. A project's discounted payback increases as the cost of capital declines. e. A project's IRR increases as the cost of capital declines.
Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? a. A project's NPV increases as the cost of capital declines. b. A project's MIRR is unaffected by changes in the cost of capital. c. A project's regular payback increases as the cost of capital declines. d. A project's discounted payback increases as the cost of capital declines. e. A project's IRR increases as the cost of capital declines.
Chapter11: Cash Flow Estimation And Risk Analysis
Section11.1: Identifying Relevant Cash Flows
Problem 3ST
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Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?
a. A project's NPV increases as the cost of capital declines.
b. A project's MIRR is unaffected by changes in the cost of capital.
c. A project's regular payback increases as the cost of capital declines.
d. A project's discounted payback increases as the cost of capital declines.
e. A project's IRR increases as the cost of capital declines.
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