When Using the NPV Method for a Particular Investment Decision

When using the NPV method for a particular investment decision, if the present value of all cash inflows is greater than the present value of all cash outflows, then:

A) the discount rate used was too high.
B) the investment provides an actual rate of return greater than the discount rate.
C) the investment provides an actual rate of return equal to the discount rate.
D) the discount rate was too low.

Correct Answer:

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