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st: Chapter 11/12 Which of the following statements is CORRECT? ation flows to account for the time value of money O b. The regular payback does not consider cash flows beyond the payback cutoff, but the discounted payback overcomes this defect. C. The the payback today. d. The regular payback method is useful as an how long it will take to recover the funds invested in the project. al QUESTION 2 les 10 cash flows. Project S has an IRR of 15%, S and L are equally have the same NPV when the WACC is 7%. which of the folowing while Project Ls IRR is 12%. The two projects Oaif the WACC is 6%, Project S will have the higher NPV. Ob.if the WACC is 13%. Project Swill have the lower NPV 0c.Project S and Project L will both have a negative NPV at a WACC of 13% sketchthe combined NPV profile). d. If the WACC is 10%, both projects wil have a negative NPV e. If the WACC is 10%, both projects wil have a positive NPV.
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