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If a company uses a 11.1% discount rate with the net present value method, and then does the same analysis, but with a 16.4% discount
If a company uses a 11.1% discount rate with the net present value method, and then does the same analysis, but with a 16.4% discount rate, which of the following is likely to occur? O Both rates will produce the same net present value. O The 16.4% rate will show the project is more profitable than the 11.1% rate. O The relative profitpility of the two studies depends only on the timing of the cash flows, not on the discount rate. O The 11.1% rate will show the project is more profitable than the 16.4% rate.
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