Multiple Choice
You are considering two projects.Project A has projected cash flows of $6,500,$4,500,and $2,500 for the next three years,respectively.Project B has projected cash flows of $2,500,$4,500,and $6,500 for the next three years,respectively.Assuming both projects have the same initial cost,you know that:
A) there are no conditions under which the projects can have equal values.
B) Project B has a higher net present value than Project A.
C) Project A is more valuable than Project B given a positive discount rate.
D) both projects offer the same rate of return.
E) both projects have equal net present values at any discount rate.
Correct Answer:

Verified
Correct Answer:
Verified
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