The net present value A Increases as the required rate of return increases B Is
ID: 2700248 • Letter: T
Question
The net present valueA Increases as the required rate of return increases B Is equal to the initial investment when the internal rate of return is equal to the required return C Method of analysis cannot be applied to mutually exclusive projects D Is inversely related to the discount rate E Is unaffected by the timing of the related cash flows A Increases as the required rate of return increases B Is equal to the initial investment when the internal rate of return is equal to the required return C Method of analysis cannot be applied to mutually exclusive projects D Is inversely related to the discount rate E Is unaffected by the timing of the related cash flows The net present value
A Increases as the required rate of return increases B Is equal to the initial investment when the internal rate of return is equal to the required return C Method of analysis cannot be applied to mutually exclusive projects D Is inversely related to the discount rate E Is unaffected by the timing of the related cash flows
Explanation / Answer
B
Is equal to the initial investment when the internal rate of return is equal to the required return