Question
When calculating a project's net present value, if the discount rate is equal to the internal rate of return of the project, then which of
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When calculating a project's net present value, if the discount rate is equal to the internal rate of return of the project, then which of the following statements is true?:
The NPV will always be less than $0.
The NPV will always be greater than $0.
The NPV will be equal to $0.
The NPV cannot be calculated if the discount rate is set equal to the internal rate of return.
(2) As observed in the data table, as the assumed discount rate (WACC) of this capital budgeting project increases the present value future cash flows of the project
decreases
increases
remains the same
cannot be determined
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