It often address topics of immediate concern to business.

If the firm uses the after-tax cost of new debt as the discount rate when analyzing a refunding decision, and if the NPV of refunding is positive, then the value of the firm will be maximized if it immediately calls the outstanding debt and replaces it with an issue that has a lower coupon rate

a. True b. FalseIndicate whether the statement is true or false

Multiple internal rates of return can occur when there is (are) ____

A) large abandonment costs at the end of a project's life B) a major shutdown and rebuilding of a facility sometime during its life C) more than one sign change in the pattern of cash flows over a project's life. D) All of these are correct