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If an investor is offered an opportunity to invest $500,000 in a new restaurant and he calculates the present value of this investment to be $400,000 using his standard discount rate of 15%, the IRR on this potential investment would be:

A. equal to 15%.

B. higher than 15%.

C. lower than 15%.

D. it is impossible to tell based on the information provided.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9419315

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