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While developing the NPV profiles for two investment projects, the analyst notes the only difference between the two projects is that Project A is expected
While developing the NPV profiles for two investment projects, the analyst notes the only difference between the two projects is that Project A is expected to receive larger cashflows early in the life of the project whereas Project B receives larger cashflows later in the life of the project. The sensitivities of the projects' NPVs to changes in the discount rate is best described as
a. equal for the two projects
b. greater for Project A than for Project B
c. lower for Project A than for Project B
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