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Question 3 of 10 View Policies Current Attempt in Progress If a company uses a 11.7% discount rate with the net present value method, and
Question 3 of 10 View Policies Current Attempt in Progress If a company uses a 11.7% discount rate with the net present value method, and then does the same analysis, but with a 15.3% discount rate, which of the following is likely to occur? O The 11.7% rate will show the project is more profitable than the 15.3% rate. O The relative profitability of the two studies depends only on the timing of the cash flows, not on the discount rate. O The 15.3% rate will show the project is more profitable than the 11.7% rate. O Both rates will produce the same net present value. e Textbook and Media Save for Later H -/1 = 1 Q Search T Attempts: 0 of 3 used Submit Answer ENG IN 980
If a company uses a 11.7% discount rate with the net present value method, and then does the same analysis, but with a 15.3% discount rate, which of the following is likely to occur? The 11.7% rate will show the project is more profitable than the 15.3% rate. The relative profitability of the two studies depends only on the timing of the cash flows, not on the discount rate. The 15.3% rate will show the project is more profitable than the 11.7% rate. Both rates will produce the same net present value
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