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Project A has a pattern of high cash inflows in the early years, while Project B has majority of its cash inflows in the later

Project A has a pattern of high cash inflows in the early years, while Project B has majority of its cash inflows in the later years. At the current required rate of return, Projects A and B have identical NPVs. Assuming that interest rates are increasing, other things held constant, this change will cause B to become more preferable than A.

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