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Which of the following statements is FALSE regarding the INTEREST RATE used in NPV calculations? a. The interest rate used may be higher or lower

Which of the following statements is FALSE regarding the INTEREST RATE used in NPV calculations?

a. The interest rate used may be higher or lower than the investment's actual internal rate of return.

b. The interest rate used may be adjusted for uncertainty.

c. Some companies use their cost of capital as the discount rate.

d. It should be equal to the maximum required rate of return needed to make the investment profitable.

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