Project cash flows equal its initial investment

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Reference no: EM131947725

1. (TRUE or FALSE) Whenever the internal rate of return is greater than or equal to the required rate of return, the hurdle rate, the project is rejected.

2. (TRUE or FALSE) We calculate the net present value for a proposed project by adding a project’s positive cash flows, one period at a time, until the sum equals the initial investment.

3. (TRUE or FALSE) The IRR is the discount rate that makes the present value of a project's cash flows equal its initial investment.

Reference no: EM131947725

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