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Question(s) / Instruction(s):

Suture Corporation\'s discount rate is 12%. If Suture has a 5-year investment project that has a project profitability index of zero, this means that:

A. the net present value of the project is equal to zero.

B. the internal rate of return of the project is equal to the discount rate.

C. the payback period of the project is equal to the project\'s useful life.

D. both A and B above are true.

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