Lawrence Corp

question 52

Multiple Choice

Lawrence Corp.is considering the purchase of a new piece of equipment.When discounted at a hurdle rate of 8%,the project has a net present value of $24,580.When discounted at a hurdle rate of 10%,the project has a net present value of ($28,940) .The internal rate of return of the project is:

• A)zero.
• B)between zero and 8%.
• C)between 8% and 10%.
• D)greater than 10%.

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