Multiple Choice
Suppose a project requires an initial investment of $1,000 and it will yield $1,050 one year later.The NPV of the project is:
A) equal to $50.
B) less than 0 if the discount rate is less than 5 percent.
C) zero if the discount rate is equal to 5 percent.
D) positive if the discount rate is greater than 5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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