A firm is evaluating a project that has a net present value of $0 when a discount rate of 8% is used. A discount rate of 6% will result in a

Question

Quizplus · Accepted Answer

A lower discount rate would result in a higher net present value, so a discount rate of 6% would result in a positive net present value since it is lower than the 8% used in the original calculation, indicating that the project is profitable.

A Firm Is Evaluating a Project That Has a Net