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Assume a project requires a net investment of $2 million and then generates positive net cash flows over the next 8 years. Which of the

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Assume a project requires a net investment of $2 million and then generates positive net cash flows over the next 8 years. Which of the following statements is most correct? (NPV = net present value and IRR = internal rate of return) All else equal, the project s NPV is unaffected by changes m the cost of capital If the NPV s greater than zero, then the IRR is greater than the cost of capital. All else equal, the project s IRR increases as the cost of capital declines All else equal, the project s NPV decreases as the cost of capital declines, erection Area

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