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Suppose You Have a Project Whose Discounted Payback Is Equal

Question 13

Multiple Choice

Suppose you have a project whose discounted payback is equal to its termination date. What can you say for sure about its PI?


A) The discounted payback will be greater than zero.
B) It will have a PI and NPV of zero.
C) The NPV and IRR will yield the same decision.
D) The IRR will just equal the cost of capital.

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