Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If NPV = $2,000 how do you interpret the magnitude of this NPV? Group of answer choices a. The required rate of return has been
If NPV = $2,000 how do you interpret the magnitude of this NPV?
Group of answer choices
a. The required rate of return has been met, plus the present value of your wealth has been increased by $2,000, so that your IRR > required return
b. The expected true profit is $2,000 in present value
c. The future value profit is $2,000
d. None of these are correct
e. The required rate of return has not been met. You fell short in terms of present value by $2,000, so that your IRR < required return
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started