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    Question

     NPV is positive when:

    A IRR = Cost of capital Correct Answer Incorrect Answer
    B IRR < Cost of capital Correct Answer Incorrect Answer
    C IRR > Cost of capital Correct Answer Incorrect Answer
    D Cash inflows are equal to outflows Correct Answer Incorrect Answer

    Solution

    Explanation: A positive NPV indicates that the project earns more than the cost of capital.

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