Multiple Choice
If a project has an internal rate of return of 14 per cent and a positive net present value,which of the following statements is true regarding the discount rate used for the net present value computation?
A) The discount rate must have been greater than 14 per cent.
B) The discount rate must have been less than 14 per cent.
C) The discount rate must have been equal to 14 per cent.
D) The discount rate must have been 0 per cent.
Correct Answer:
Verified
Correct Answer:
Verified
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