When Using the Net Present Value Method for Evaluating an Investment,an

question 19

Multiple Choice

When using the net present value method for evaluating an investment,an increase in the required rate of return will:

• A)Make it more difficult to accept the investment.
• B)Make it less difficult to accept the investment.
• C)Not affect the decision,if the length of the investment's benefits remain constant.
• D)Not be a consideration because it is not used in the net present value method.

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