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4. When a project has multiple rates of return: A. The analyst should choose the highest rate to compare with the firms cost of capital.

4. When a project has multiple rates of return:

A. The analyst should choose the highest rate to compare with the firms cost of capital.

B. The analyst should choose the lowest rate to compare with the firms cost of capital.

C. The analyst should choose the rate that seems most reasonable, given the projects cash flows, to compare with the firms cost of capital.

D. The analyst should compute the projects net present value and accept the project if its NPV is greater than $0.

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