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A four-year project has cash outflows and cash inflows when present valued (discounted) at 12% gives a Net Present Value (NPV) of zero (R0) .
A four-year project has cash outflows and cash inflows when present valued (discounted) at 12% gives a Net Present Value (NPV) of zero (R0). Which of the following statements are true?
- A.
The Internal Rate of Return (IRR) is 12%.
- B.
The IRR is < 12%.
- C.
The IRR cannot be determined from the above information.
- D.
The IRR is > 12%.
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