If a capital expenditure project has an expected 20% internal rate of return, and a $10,000 net present value, and one cash flow sign change, then which one of the following statements about the project is true?
A) The discount rate used to calculate NPV is greater than 20%
B) The project has another internal rate of return in addition to the 20% rate mentioned above
C) In the internal rate of return calculation, the project's cash inflows are assumed to be reinvested at the firm's required rate of return
D) None of these is correct
Correct Answer:
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