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Projects A and B have identical expected lives and identical initial cash outflows (costs). However, most of one project's cash flows come in the early
Projects A and B have identical expected lives and identical initial cash outflows (costs). However, most of one project's cash flows come in the early years, while most of the other project's cash flows occur in the later years. The two NPV profiles are given below:
Why is the answer that more of project A's cash flows occur in the later years?
NPV ($) A B r (%)Step by Step Solution
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