Next Page

Page $24$ of $50$

Question $24(1$ point$)$

The Present Value $($PV$)$ ratios computed for the cash$-$flows of a certain investment at discount rates of $5\%$ and $15\%$ respectively were found to be $1\mathrm{.}05$ and $0\mathrm{.}45$ respectively. What is the breakeven discount rate for this investment?

None of the answers is accurate

$10\mathrm{.}45\%$

$7\%$

$5\mathrm{.}83\%$

$10\%$