Multiple Choice
You have a choice between two projects, Project1 pays $12,000 back at the end of 1 period on an investment of $10,000. Project 2 pays back $6,500 at the end of 1 period on an investment of $5,000. Which project should be chosen and what is the problem that you must be concerned with in this choice?
A) Project 1; discount rate.
B) Project 2; discount rate.
C) Project 1; project scales.
D) Project 2; project scales.
E) Project 1, cash flow timings.
Correct Answer:
Verified
Correct Answer:
Verified
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