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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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Solution Summary

The net present value of the investment is demonstrated.

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

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