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Project S has a pattern of high cash flows in its early life, while Project L has a longer life, with large cash flows late

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Project S has a pattern of high cash flows in its early life, while Project L has a longer life, with large cash flows late in its life. Neither has negative cash flows after Year , and at the current cost of capital, the two projects have identical NPVs. Now suppose interest rates and money costs decrease. Other things held constant, this change will cause L to become preferred to S. True False

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