A particular investment proposal has a positive net present value of $20 when a discount rate of 8 percent is used The same proposal has a negative net present value of $2,000 when a discount rate of 10 percent is used What conclusions can be drawn about the estimated return of this proposal ...

A particular investment proposal has a positive net present value of $20 when a discount rate of

Question:

A particular investment proposal has a positive of $20 when a of 8 percent is used. The same proposal has a negative of $2,000 when a of 10 percent is used. What conclusions can be drawn about the estimated return of this proposal?
Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...