Which one of the following will occur when the internal rate of return equals the required return?
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Question:
Which one of the following will occur when the internal rate of return equals the required return? Explain why?
The average accounting return will equal 1.0. | |
The profitability index will equal 1.0. | |
The profitability index will equal 0. | |
The net present value will equal the initial cash outflow. | |
The profitability index will equal the average accounting return. |
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