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When Using the NPV Method for a Particular Investment Decision

Question 7

Multiple Choice

When using the NPV method for a particular investment decision, if the present value of the cash inflows is equal to the present value of the cash outflows, then:


A) the discount rate used was too high.
B) the investment should not be made.
C) the investment has an actual rate of return of zero percent.
D) the discount rate is equal to the internal rate of return.

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