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41. Projects A and B each have an Inittal cost of $S,000, followed by a serles of positive cash Inflows. Project A has total undiscounted

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41. Projects A and B each have an Inittal cost of $S,000, followed by a serles of positive cash Inflows. Project A has total undiscounted cash inflows of $12,000, whille B has total undiscounted inflows of $10,000. Further, at a discount rate of 10 percent, the two prolects have Identical NPVs. Which project's NPV will bo more sensitive to changes In the discount rate? (Hint: projects with steeper NPV proflles are more sensitive to discount rate changes.) a. Project A b. Project B c. Both projects are equally sensitive to changes in the discount rate since their NPVs are equal at all costs of capital. d. Nelther project is sensitive to changes in the discount rato, since both have NPV profles which are horizontal. e. The solution cannot be determined unless the timing of the cash flows is known

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