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Consider the after - tax cash flows for Project S and Project L: Project S Project L Year 1 $ 3 0 0 0 0

Consider the after-tax cash flows for Project S and Project L:
Project S
Project L
Year 1
$3000
0
Year 2
0
$3000
A rational investor would prefer ________.
A.
neither investment over the other
B.
information about profits instead of cash flows
C.
Project L because they can avoid taxes by receiving cash flows later
D.
Project S because the money can be reinvested sooner

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