Question: Write down the formulas for an investments NPV and rate of return. Prove that NPV is positive only if the rate of return exceeds the
Write down the formulas for an investment’s NPV and rate of return. Prove that NPV is positive only if the rate of return exceeds the opportunity cost of capital.
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Let INV investment required at time t 0 ie INV C 0 and let x rate ... View full answer
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