The net present value of a project is zero. The minimum desired rate of return u

Question

The net present value of a project is zero. The minimum desired rate of return used to obtain the net present value is 8%. Which of the following statements is TRUE? Answer A. The project is desirable if the minimum desired rate of return is 6% or 10%. B. The project is desirable if the minimum desired rate of return is 10%. C. The project is desirable if the minimum desired rate of return is 6%. D. The project is undesirable if the minimum desired rate of return is 6%. The net present value of a project is zero. The minimum desired rate of return used to obtain the net present value is 8%. Which of the following statements is TRUE? The net present value of a project is zero. The minimum desired rate of return used to obtain the net present value is 8%. Which of the following statements is TRUE? The project is desirable if the minimum desired rate of return is 6% or 10%. The project is desirable if the minimum desired rate of return is 10%. The project is desirable if the minimum desired rate of return is 6%. The project is undesirable if the minimum desired rate of return is 6%. A. The project is desirable if the minimum desired rate of return is 6% or 10%. B. The project is desirable if the minimum desired rate of return is 10%. C. The project is desirable if the minimum desired rate of return is 6%. D. The project is undesirable if the minimum desired rate of return is 6%.

Explanation / Answer

B.

The project is desirable if the minimum desired rate of return is 10%.

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