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A company is considering two projects. Projects A and B have equal NPVs if the WACC is zero. However, their cash flows are not equal.
A company is considering two projects. Projects A and B have equal NPVs if the WACC is zero. However, their cash flows are not equal. Project A's cash flows materialize quicker than those of Project B along the project life cycle (i.e. the timeline). Thus, one can conclude that at any positive WACC, Project B will have a greater NPV. True False
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