Multiple Choice
Use the information for the question(s) below.
Epiphany Industries is considering a new capital budgeting project that will last for three years.Epiphany plans on using a cost of capital of 12% to evaluate this project.Based on extensive research,it has prepared the following incremental cash flow projections:
-Epiphany would like to know how sensitive the project's NPV is to changes in the discount rate.How much can the discount rate vary before the NPV reaches zero?
A) 7.14%
B) 19.14%
C) 12.0%
D) 0%
Correct Answer:

Verified
Correct Answer:
Verified
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