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$25 investment produces $27.50 at the end of the year with no risk. Which of the following is true? A)NPV is positive if the interest

  1. $25 investment produces $27.50 at the end of the year with no risk. Which of the following is true?
  2. A)NPV is positive if the interest rate is less than 10%.
  3. B)NPV is negative if the interest rate is less than 10%.
  4. C)NPViszeroiftheinterestrateisequalto10%.
  5. D)BothAandC.
  6. E)None of the above.

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