Quiz Ch 11 – T/F WACC’s Influence on NPVs and IRRs in Project Evaluation

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: Rising WACC reduces projects' NPVs, potentially altering accept/reject choices. However, this change does not affect projects' IRRs. Consequently, the IRR method's accept/reject decision remains unaffected by the cost of capital.

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