Question: The investment in Project A is 1 million and

The investment in Project A is $ 1 million, and the investment in Project B is $ 2 million. Both projects have a unique internal rate of return of 20 percent. Is the following statement true or false?
For any discount rate from 0 percent to 20 percent, Project B has an NPV twice as great as that of Project A. Explain your answer.

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  • CreatedAugust 28, 2014
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