The Xu Corp. is considering making an investment that costs $10 million. It expects to receive cash inflows of $3 million per year for eight years. The interest rates right now in the market are 5%. If interest rates rise to 6%, then:
A) The net present value of this investment would stay the same
B) The net present value of this investment would increase
C) The net present value of this investment would decrease
Correct Answer:
Verified
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