If a company uses a 13.1% discount rate with the net present value method, and then does the same analysis, but with a 16.8% discount rate, which of the following is likely to occur? The 16.8% rate will show the project is more profitable than the 13.1% rate. The relative profitability of the two studies depends only on the timing of the cash flows, not on the discount rate. The 13.1% rate will show the project is more profitable than the 16.8% rate. Both rates will produce the same net present value.

If a company uses a 13.1% discount rate with the net present value method, and then does the same analysis, but with a 16.8% discount rate, which of the following is likely to occur? The 16.8% rate will show the project is more profitable than the 13.1% rate. The relative profitability of the two studies deperds only on the timing of the cash flows, not on the discount rate. The 13.1% rate will show the project is more profitable than the 16.8% rate. Both rates will produce the same net present value. Your answer is correct. If a company uses a 13,1% discount rate with the net present value method, and then does the same analysis, but with a 16.8% discount rate, which of the following is likely to occur? The 16.8% rate will show the project is more profitable than the 13.1% rate. The relative profitability of the two studies depends only on the timing of the cash flows, not on the discount rate. The 13.1% rate will show the project is more profitable than the 16.8% rate. Both rates will produce the same net present value