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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.

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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.

$2.19