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Multiple Choice

When the net present value is positive:

a) the internal rate of return equals the cost of capital
b) the internal rate of return exceeds the cost of capital
c) the internal rate of return is less than the cost of capital
d) the internal rate of return equals zero

Solution Preview

b) the internal rate of return exceeds the cost of capital

At the ...

Solution Summary

The solution explains the correct choice among the given alternatives

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