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.

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

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

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