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Which one of the following statements is correct given the following two sets of project cash flows? Project A Project B Year 1 $6,000 $2,000
Which one of the following statements is correct given the following two sets of project cash flows? Project A Project B Year 1 $6,000 $2,000 Year 2 $ 0 $3,000 Year 3 $2,500 $3,000 Year 4 $2,500 $3,000 A. The cash flows for Project B are an annuity, but those of Project A are not. B. Both sets of cash flows have equal present values as of time zero given a positive discount rate C. The present value at time zero of the final cash flow for Project A will be discounted using an exponent of three D. The present value of Project A cannot be computed because the second cash flow is equal to zero E. As long as the discount rate is positive, Project B will always be worth less today than will Project A
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