If a project has a net present value of $1.000 when a discount rate of 10 percent is used, what can be concluded about the rate of return of the project? The rate of return is greater than 10 percent O The cate of return is less than 10 percent O The rate of return equals 10 percent. The rate of return is zero percent O None of the above.
If a project has a net present value of $1.000 when a discount rate of 10 percent is used, what can be concluded about the rate of return of the project? The rate of return is greater than 10 percent O The cate of return is less than 10 percent O The rate of return equals 10 percent. The rate of return is zero percent O None of the above.
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 1P
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