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The internal rate of return equal to its cost of capital.

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25. A company invests in a project that realizes an internal rate of return equal to its cost of capital. The project should:

a Increase the value of the company
b Have little or no effect on the value of the company
c Decrease the value of the company
d Cause the company to realize an infinite net present value

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A sentence and a reference to assist you. The expert examines internal rate of return equal to its cost of capital.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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