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A firm that pays taxes is considering two projects that are very similar, including having the same forecasted net income. However, the projects do differ
A firm that pays taxes is considering two projects that are very similar, including having the same forecasted net income. However, the projects do differ in some forecasted items such as administrative expense, depreciation expense, and others despite the net income for the two being the same. According to the finance view of the firm: O a. Because the projects have the same forecasted income, it is clear that the firm should be indifferent between the two. It is possible that the firm should favor one of the projects over the other despite that each of them has the same forecasted net income. b
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