Question
Suppose that for a sequence of cash flows, the first cash flow in the sequence is negative and that the cash flows have a unique
Suppose that for a sequence of cash flows, the first cash flow in the sequence is negative and that the cash flows have a unique Internal Rate of Return of 15% per year. Is the following statement true or false?
If you discount the cash flows using a rate of 15% per period, the NPV of the cash flows is positive.
- True
- False
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen
8th edition
1259917061, 978-1259917066
