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The net present value A Increases as the required rate of return increases B Is

ID: 2700248 • Letter: T

Question

The net present value

A Increases 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 Is inversely related to the discount rate E Is unaffected by the timing of the related cash flows A Increases 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 Is inversely related to the discount rate E Is unaffected by the timing of the related cash flows The net present value

A Increases 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 Is inversely related to the discount rate E Is unaffected by the timing of the related cash flows

Explanation / Answer

B

Is equal to the initial investment when the internal rate of return is equal to the required return

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