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The net present value: is inversely related to the discount rate. is equal to the initial investment when the internal rate of return is equal
The net present value:
is inversely related to the discount rate. | ||
is equal to the initial investment when the internal rate of return is equal to the required return. | ||
is unaffected by the timing of the related cash flows. | ||
increases as the required rate of return increases. | ||
method of analysis cannot be applied to mutually exclusive projects. |
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