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A $35 Investment Produces $38

Question 58

Multiple Choice

A $35 investment produces $38.50 at the end of the year with no risk.Which of the following is true?


A) NPV is positive if the interest rate is less than 10%.
B) NPV is negative if the interest rate is less than 10%.
C) NPV is zero if the interest rate is equal to 10%.
D) Both A and C.
E) None of the above.

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