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If a Project Has a Net Present Value of £0

Question 20

Multiple Choice

If a project has a net present value of £0 when a discount rate of 10 per cent is used, what can be concluded about the rate of return of the project?


A) The rate of return is greater than 10 per cent.
B) The rate of return is less than 10 per cent.
C) The rate of return equals 10 per cent.
D) The rate of return is 0.

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