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Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?A. A project's IRR increases as the WACC declines.B. A project's MIRR is unaffected by changes in the WACC.C. A project's regular payback increases as the WACC declines.D. A project's discounted payback increases as the WACC declines.E. A project's NPV increases as the WACC declines.

Question
Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?

A. A project's IRR increases as the WACC declines.
B. A project's MIRR is unaffected by changes in the WACC.
C. A project's regular payback increases as the WACC declines.
D. A project's discounted payback increases as the WACC declines.
E. A project's NPV increases as the WACC declines.
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The correct answer is option (e).   The weighted average cost of capital includes the cost of capital of each type of source of capit...

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