Question
Project A has cash flows of $18,500, $18,000, $17,500, and $17,000 for Years 1 to 4, respectively. Project Q has cash flows of $17,000, $17,500,
Project A has cash flows of $18,500, $18,000, $17,500, and $17,000 for Years 1 to 4, respectively. Project Q has cash flows of $17,000, $17,500, $18,000, and $18,500 for Years 1 to 4, respectively. Which one of the following statements is true concerning these two projects given a positive discount rate? (No calculations needed) Group of answer choices Project Q has a higher present value than Project A. Both projects are ordinary annuities. Both projects have the same value at Time 0. Project A has both a higher present and a higher future value than Project Q. Both projects have the same future value at the end of Year 4.
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