Solved

If Project a Generates $10 Million of Free Cash Flow

Question 142

True/False

If project A generates $10 million of free cash flow over its five year useful life and project B generates $8 million of free cash flow over its five year useful life,then Project A will have a shorter payback period than Project B,assuming both projects require the same initial investment.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q137: A project's net present value profile shows

Q138: Finance theory suggests that the IRR criterion

Q139: How might capital rationing conflict with the

Q140: If a project is acceptable using the

Q141: The payback period may be more appropriate

Q143: Kingston Corp.is considering a new machine that

Q144: Consider two mutually exclusive projects X and

Q145: A significant disadvantage of the internal rate

Q146: NPV may be calculated on an Excel

Q147: Your firm is considering an investment that