Question #268368

Project A has a net present value of zero when the discounting factor of 20% is used. How much returns is the project earning?


Expert's answer

NPV=0.NPV=0.

Discounting factor=20%

Return =NPV×(1+i)t=NPV\times(1+i)^t

=0×(10.2)1=0\times(1-0.2)^1

=0=0



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