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If the Net Present Value of a Project That Costs

Question 28

Multiple Choice

If the net present value of a project that costs $20,000 is $5,000 when the discount rate is 10%,then the:


A) project's IRR equals 10%.
B) project's rate of return is greater than 10%.
C) net present value of the cash inflows is $4,500.
D) project's cash inflows total $25,000.

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