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If a company uses a 1 1 . 5 % discount rate with the net present value method, and then does the same analysis, but
If a company uses a discount rate with the net present value method, and then does the same analysis, but with a discount rate, which of the following is likely to occur?
Both rates will produce the same net present value.
The rate will show the project is more profitable than the rate.
The rate will show the project is more profitable than the rate.
The relative profitability of the two studies depends only on the timing of the cash flows, not on the discount rate.
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