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A company is considering a two year project which has two annual IRRs namely 10% and 25%.The sum of the undiscounted cashflows is positive.
The project will necessarily have a positive NPV,when the annual cost of capital is,
A more than 25%
B more than 10%
C between 10% and 25%
D less than 25%How to answer this question?How to think about this question?
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