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Internal Rate of Return Homework help

A positive net present value shows that the projected income produced by a project or investment (in present dollars) exceeds the predictable costs (also in present dollars). Commonly, an investment with a positive NPV will be a gainful one and one with a negative NPV will outcome in a net loss. This perception is the basis for the NPV Rule, which shows that the only investments that should be created are those with positive net present values.

 

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