Multiple Choice
The NPV of an initial investment of $1,500,000 with a 10% required rate of return over 10 years is calculated at $120,000. What should the company do?
A) Invest - the NPV is greater than $0.
B) Not invest - the NPV is less than the 10% stated.
C) Find a way to reduce the initial investment to $1,200,000 and still yield the same amount.
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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