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An Investment Costing $25 Returns $27

Question 37

Multiple Choice

An investment costing $25 returns $27.50 at the end of one year with no risk.Given this,you know that the NPV:


A) is zero at any given discount rate.
B) is negative if the required return is less than 10 percent.
C) equals 1.0 if the required return is 10 percent.
D) is zero if the required rate of return is 10 percent.
E) must be positive at any given discount rate.

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