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Suppose that a project provides a 9% nominal rate of return. Expected inflation over the project's life is 4% and your company's investors require a
Suppose that a project provides a 9% nominal rate of return. Expected inflation over the project's life is 4% and your company's investors require a real return of 7%.Which of the following statements is true?
A. The project should be rejected using IRR analysis.
B. The project should be accepted using IRR analysis.
C. Your company should be indifferent between accepting and rejecting the project.
D. Cannot be determined.
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