Reference no: EM132527194

Question 1: A capital investment has a net present value of $1,000.00 at a required rate of return of 10%. At a 12% required rate of return, the net present value of the investment is $100.00. At a 14% required rate of return, the net present value of the investment is $0. The capital investment should be rejected if ________.

Option A). the required rate of return exceeds 14%

Option B). the required rate of return is less than 12%

Option C). the required rate of return is less than 14%

Option D). the required rate of return exceeds 12%