The guy above is wrong. In any case where IRR < WACC, NPV is NEGATIVE.
The question had WACC go from 14 - 12, when IRR was 11. The NPV for the project is still negative. It became less negative, but the question asked what is the project's NPV, negative, positive, zero? It is still negative.
Edited 1 time(s). Last edit at Friday, June 12, 2009 at 10:20AM by billbelemy22.