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Understanding NPV Wilson, Inc., has a project with an expected cash inflow of $1 million at the end of Year 5. Wilson has a second
Understanding NPV
Wilson, Inc., has a project with an expected cash inflow of $1 million at the end of Year 5. Wilson has a second project with an expected cash inflow of $200,000, to be received at the end of each year for the next five years.
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If both projects have the same total expected cash outflows, what can be said of the net present value of the first project compared with that of the second project?
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