If the internal rate of reutrn of an investment in equipment is equal to the discount rate:? and IMF Conference: Sustainable Investment scaling up in LIC

If the internal rate of reutrn of an investment in equipment is equal to the discount rate:?

1. The net present value of the investment will be zero.
2. The payback period of he investment will be equal to the useful life of the equipment.
3. Neither 1 or 2 will be true
4. Both 1 and 2 will be true.


Investment best answer:

Answer by Jo
1. The net present value of the investment will be zero


The payback period will increase but not necessarily to useful life of equipment.

Investment

IMF Conference: Sustainable Investment scaling up in LIC


Image by International Monetary Fund
IMF Conference: Sustainable Investment scaling up in Low Income Countries

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