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| After investing in a new project, a company discovered that its residual income remained unchanged. Which one of the following must be true about the new project? A. The net present value of the new project must have been negative. B. The return on investment of the new project must have been less than the firm’s cost of capital. C. The return on investment of the new project must have been equal to the firm’s cost of capital. D. The net present value of the new project must have been positive. |