When computing a bid price, the net present value should be set equal to zero...

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Finance

When computing a bid price, the net present value should be set equal to zero because:

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The internal rate of return must exceed the required rate of return.

The internal rate of return will be unreliable.

The goal is to just break even from an accounting perspective.

The company does not require a profit but does want to cover their production costs.

The required return is used as the discount rate.

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