Answer to Question #268368 in Microeconomics for Ray

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."

Discounting factor=20%

Return "=NPV\\times(1+i)^t"

"=0\\times(1-0.2)^1"

"=0"

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