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Suppose a project’s WACC is greater than its IRR, then its NPV might still be positive....

Suppose a project’s WACC is greater than its IRR, then its NPV might still be positive. T/F

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false. Internal rate of return is the rate at which the projects NPV is 0. NPV will always be less than 0 if the cost of financing the project i.e the WACC( weighted average cost of capital) is greater than the return in terms of cash flows that are received from the project. Hence the project should be rejected from a cash flow perspective.

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