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Which of the following statements is true? Multiple Choice NPV is a good measure to use when comparing investments of different sizes. When NPV is

Which of the following statements is true?

Multiple Choice

  • NPV is a good measure to use when comparing investments of different sizes.

  • When NPV is 0, the IRR is equal to the discount rate.

  • When NPV is 0, the investment is not making a profit.

  • In calculating IRR, we make the assumption all cash flows are reinvested at the discount rate.

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