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Business, 14.12.2019 06:31 rebeccacopley8307

Acompany is contemplating investing in a new piece of manufacturing machinery. the amount to be invested is $100,000. the present value of the future cash flows at the company's desired rate of return is $100,000. the irr on the project is 12%. which of the following statements is true?

a. the desired rate of return used to calculate the present value of the future cash flows is less than 12%.
b. the desired rate of return used to calculate the present value of the future cash flows is equal to 12%.
c. the desired rate of return used to calculate the present value of the future cash flows is more than 12%.
d. the project should not be accepted because the net present value is negative.

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