FIN 534 RANK Change The World /fin534rank.com FIN 534 RANK Change The World /fin534rank.com | Page 15

Which of the following statements is
CORRECT?
• Question 14
Which of the following statements is NOT a disadvantage of the
regular payback method?
• Question 15
Which of the following statements is CORRECT? Assume that
the project being considered has normal cash flows, with one outflow
followed by a series of inflows.
• Question 16
Projects S and L are both normal projects with an initial cost of
$10,000, followed by a series of positive cash inflows. Project S's
undiscounted net cash flows total $20,000, while L's total undiscounted
flows are $30,000. At a WACC of 10%, the two projects have identical
NPVs. Which project's NPV is more sensitive to changes in the
WACC?