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A company has a project with an estimated net present value (NPV) of $500,000. Suppose that the project has a unique internal rate of return
A company has a project with an estimated net present value (NPV) of $500,000. Suppose that the project has a unique internal rate of return (IRR) and an opportunity cost of capital of 15%. Determine whether the IRR of the project will be greater than, equal to, or less than 15%. You should explain the logic behind your answer. (Hint: you can elaborate this using a graph.)
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