NPV of Projects
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The net present value of a project is zero. The minimum desired rate of return used to obtain the net present value is 8%. Which of the following statements is TRUE?
Answer
A. The project is desirable if the minimum desired rate of return is 10%.
B. The project is desirable if the minimum desired rate of return is 6%.
C. The project is undesirable if the minimum desired rate of return is 6%.
D. The project is desirable if the minimum desired rate of return is 6% or 10%.
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This solution provides the correct answer with explanation to the NPV multiple choice question listed. Includes 1 reference.
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A. The project is desirable if the minimum desired rate of return is 10%.
In the question, we have ...
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