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If the Required Return Is Zero, Then

Question 246

Multiple Choice

If the required return is zero, then:


A) The payback period exceeds the discounted payback period.
B) The NPV equals the difference between the undiscounted future cash flows and the initial cost.
C) If the NPV is negative, the IRR will be greater than zero.
D) The PI will be less than one.
E) The project will be acceptable according to the AAR criteria.

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