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net, present, value, investment

Assume the required rate of return increases to 20%. The net present value of the investment would

a. increase
b. decrease
c. stay the same
d. become negative
e. both "b" and "d", above.

Solution Preview

e. either "b" or "d"
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<br>By formular PV=FV/(1+r)^t
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<br>Since the ...

Solution Summary

The net present value of the investment is demonstrated.

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