A Firm Is Evaluating a Project That Has a Net

question 10

Multiple Choice

A firm is evaluating a project that has a net present value of $0 when a discount rate of 10% is used.A discount rate of 7% will result in a:

• A) negative net present value.
• B) positive net present value.
• C) net present value of $0.
• D) The question cannot be answered based upon the information provided.

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