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If a company uses a 12% discount rate with the net present value method, and then does the same analysis, but with a 15% discount
If a company uses a 12% discount rate with the net present value method, and then does the same analysis, but with a 15% discount rate, which of the following is likely to occur? Select one: a. The 12% rate will show the project Ys more profitable than the 15% rate b. The 15% rate will show the project is more profitable than the 12% rate c. The relative profitability of the two studies depends only on the timing of the cash flows, not on the discount rate d. Both rates will produce the same net present value
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