The possibility that more than one discount rate will make the NPV of an investment equal to zero is called the _____ problem.
A)multiple rates of return
B)scale
C)mutually exclusive investment decision
D)operational ambiguity
E)net present value profiling

Question

Quizplus · Accepted Answer

The possibility of multiple rates of return can lead to confusion and uncertainty when deciding whether or not to pursue an investment. This is because different discount rates can result in different NPV values, which can make it difficult to determine the true value of the investment.

The Possibility That More Than One Discount Rate Will Make