Question
Assume you have two investment opportunities that return the following cash flows: Year 1 Year 2 Year 3 Opportunity A $50,000 $50,000 $50,000 Opportunity B
Assume you have two investment opportunities that return the following cash flows:
| Year 1 | Year 2 | Year 3 | |
| Opportunity A | $50,000 | $50,000 | $50,000 |
| Opportunity B | $150,000 |
Assume the opportunity cost rate is positive and the initial cost of the two investments is the same. You will be indifferent between Opportunity A and Opportunity B because each of the investments return the same total cash flow.
| True |
| False |
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De Gruyter Handbook Of Entrepreneurial Finance
Authors: David Lingelbach
1st Edition
3110726750,3110726351
