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Which statement describes the relation between NPV and discount rates best for the projects analyzed below: A. Project A's NPV was more sensitive to a

Which statement describes the relation between NPV and discount rates best for the projects analyzed below:

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A. Project A's NPV was more sensitive to a change in the discount rate, because its weighted cash inflows occur earlier in time.

B. Project A's NPV was more sensitive to a change in the discount rate, because its weighted cash inflows occur later in time.

C. Project B's NPV was more sensitive to a change in the discount rate, because its weighted cash inflows occur earlier in time.

D. Project B's NPV was more sensitive to a change in the discount rate, because its weighted cash inflows occur later in time.

Project A $230,000 140,000 95,000 85,000 Project B $230,000 66,000 95,000 175,000 Year 0 2

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