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A $25 Investment Produces $27

Question 23

Multiple Choice

A $25 investment produces $27.50 at the end of the year with no risk. Which of the following is not 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%.

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