If the Net Present Value (“NPV”) of a project’s after tax cashflow is zero at a 12% discount rate which one of the following statements is correct?

Question

Accepted Answer

The internal rate of return is 12.0%

Answer

The discounted cashflow rate is zero

Answer

Your recommendation on whether to proceed with this project will depend upon the organization’s project hurdle rate of return

Answer

A Company’s project hurdle rate is equal or higher than its weighted average cost of capital

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