Which one of the following statements is correct?

A. The net present value is a measure of profits expressed in today's dollars.
B. The net present value is positive when the required return exceeds the internal rate of return.
C. If the initial cost of a project is increased, the net present value of that project will also increase.
D. If the internal rate of return equals the required return, the net present value will equal zero.
E. Net present value is equal to an investment's cash inflows discounted to today's dollars.

Answer: D. If the internal rate of return equals the required return, the net present value will equal zero.

Business

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If the researcher is expecting different responses between males and females in a study, which type of sample might be most useful?

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