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- September 17, 2025 at 4:11 pm #720046
A company is considering a two-year project, which has two annual
internal rates of return, namely 10% and 25%. The sum of the
undiscounted cash flows is positive.
The project will necessarily have a positive net present value,
when the annual cost of capital is
A More than 25%
B More than 10%
C Between 10% and 25%
D Less than 25%I was not able to understand this question at all.
Can you please explain this questionSeptember 17, 2025 at 4:14 pm #720047Here is the solution as well i was not able to understand the solution as well:
Answer A
The graph would be U-shaped with a negative NPV between 10% and
25% and positive NPVs at less than 10% or more than 25%. - AuthorPosts
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