Question
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:
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 2Step by Step Solution
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