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A business deal that costs $ 2 , 5 0 0 today and pays a monthly dividend at the beginning of the month for five
A business deal that costs $ today and pays a monthly dividend at the beginning of the month for five months. The first dividend is $ the next is $ and the remaining dividends are $ each. If the hurdle rate for the deal increases to and the dividends are paid at the end of the month, what will happen to the NPV
NPV will increase.
NPV will decrease.
NPV will remain the same.
Can not be determined without knowing the original interest rate.
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