If the calculated NPV is negative, then which of the following must be true? The discount rate used is ________.
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A. B. C. D. E.C
If a project has a positive NPV, then it is generating more cash than is needed to service its debt and to provide the required return to shareholders, and this excess cash accrues solely to the firm stockholders. On the other hand is a project has a negative NPV, the required rate of return is not being met and the discount rate used must be greater.