Project A has a net present value of zero when the discounting factor of 20% is used. How much returns is the project earning?
NPV=0.NPV=0.NPV=0.
Discounting factor=20%
Return =NPV×(1+i)t=NPV\times(1+i)^t=NPV×(1+i)t
=0×(1−0.2)1=0\times(1-0.2)^1=0×(1−0.2)1
=0=0=0
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