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The Net Present Value

Question 2

Multiple Choice

The net present value:


A) decreases as the required rate of return increases.
B) is equal to the initial investment when the internal rate of return is equal to the required return.
C) method of analysis cannot be applied to mutually exclusive projects.
D) ignores cash flows that are distant in the future.
E) is unaffected by the timing of an investment's cash flows.

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