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QUESTION
$25 investment produces $27.50 at the end of the year with no risk. Which of the following is true?
- $25 investment produces $27.50 at the end of the year with no risk. Which of the following is true?
- A) NPV is positive if the interest rate is less than 10%.
- B) NPV is negative if the interest rate is less than 10%.
- C) NPViszeroiftheinterestrateisequalto10%.
- D) BothAandC.
- E) None of the above.
