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The net present value of an investment a. is equal to the initial investment if the IRR is equal to the required rate of return.
The net present value of an investment
a. is equal to the initial investment if the IRR is equal to the required rate of return.
b. is not affected by the timing of the investments cash flows.
c. is less than zero if the profitability index is greater than one.
d. decreases as the required rate of return increases. e. cannot be used to rank mutually exclusive projects.
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