Relationship of NPV, IRR, MIRR and WACC
Not what you're looking for?
If a project has an up-front cost of $100,000. The project WACC is 12% and NPV is $10,000. which of the following statement is most correct?
A. the project should be rejected since its return is less than the WACC
B. The project's IRR is greater than 12%
C. The project MIRR is less than 12%
D. all the above answers are correct
E. None of the above is correct
Purchase this Solution
Solution Summary
This solution discusses the relationship of a project's net present value, internal rate of return, modified internal rate of return, and weighted-average cost of capital.
Solution Preview
Because the project produces a positive net present value when discounted at 12 percent, and the internal rate of return is the rate at which the ...
Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.