Rate of return of the project

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1. The present value of the benefits of a project are calculated to be $1596 using an interest rate of 5%. Which of the following statements are true?

I. The quantity of investment demanded by the firm at an 5% interest rate must be at least $1596.

II. If the project costs $1550 today, the rate of return of the project is more than 5%.

III. If the interest rate was 7%, and the project costs $1596 today, the firm would not do the project.

Reference no: EM132500482

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