When the Rate of Return Is Equal to the Discount

question 25

Multiple Choice

When the rate of return is equal to the discount rate

• A) the present value of an investment's benefits must be greater than its cost.
• B) the cost of an investment equals the sum of its benefits.
• C) the cost of an investment equals the future value of its benefits.
• D) the cost of an investment equals the present value of its benefits.

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Definitions:

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