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Consider business projects A=(20,21,22,..., an) and B=(bo,b1,b2,..., bn) where ap-bo Consider business projects .n) and bn) where and all other cashflows in both projects are
Consider business projects A=(20,21,22,..., an) and B=(bo,b1,b2,..., bn) where ap-bo
Consider business projects .n) and bn) where and all other cashflows in both projects are positive. Evaluate the following statements: Trw. false. it depends? Explain each answer in less than 10 lines. a. If A has finite PP, A has finite DPP. b. If NPV Of A is positive, A must necessarily have finite PP. c. a project A has smaller DPP than B, A must also have smaller NPV. d, if A has positive IRR, A has finite PP. A has stnaller NPV than B, A also has smaller IRR. Both A md B have a unique IRR. e u DPP(B) then PP(A) < PP(B)
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