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Relationship of NPV, IRR, MIRR and WACC

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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

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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.

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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 ...

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