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Which of the following statements is true of a capital budgeting project with a negative net present value (NPV)? A-The project's internal rate of return
Which of the following statements is true of a capital budgeting project with a negative net present value (NPV)?
A-The project's internal rate of return is higher than the discount rate used for NPV analysis.
B-The project's internal rate of return is also negative.
C-A firm should invest in a project with a negative NPV if the initial investment outlay is low.
D-The project's traditional payback period is greater than the firm's expected payback period.
E-The project's discounted payback period is greater than its economic life.
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