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Suppose a Project Requires an Initial Investment of $10,000 and It

Question 2

Multiple Choice

Suppose a project requires an initial investment of $10,000 and it will yield $10,500 one year later.The NPV of the project is:


A) equal to $500.
B) less than 0 if the discount rate is less than 5 percent.
C) zero if the discount rate is equal to 5 percent.
D) positive if the discount rate is greater than 5 percent.

Correct Answer:

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