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    Capital Budgeting

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    If the NPV of a project with conventional cash flow is $500 and the required rate of return is 8%, the IRR must be:

    A) equal to $500
    B) Less than 8%
    C) equal to 8%
    d) greater than 8%
    e) not enough information provided to accurately choose one of the answers above

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    Solution Summary

    Solution selects the correct prediction for IRR in the given scenario.