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They expect to have various cash inflows but no additional

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Kowalski Distributors has invested $40,000 in a project. They expect to have various cash inflows but no additional cash outflows. Kowalski's discount rate is 12% and the project profitability index on the project is zero. Are the following statements TRUE or FALSE?

1) The present value of the cash inflows is $40,000

2) The project's internal rate of return is equal to 12%

Reference no: EM13575089

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