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A Firm Has Two Projects

Question 75

Multiple Choice

A firm has two projects.Project A has an internal rate of return of 6%.Project B's internal rate of return is 11%.If the firm's discount rate is 9.57%,


A) both projects have a negative net present value.
B) only project A has a positive net present value.
C) only project B has a positive net present value.
D) both projects have a positive net present value.

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