Question
You are considering two projects with the following cash flows: Project Y Project X Year 1 $9,500 $6,000 Year 2 $9,000 $6,900 Year 3 $6,900
You are considering two projects with the following cash flows:
| Project Y | Project X | |
| Year 1 | $9,500 | $6,000 |
| Year 2 | $9,000 | $6,900 |
| Year 3 | $6,900 | $9,000 |
| Year 4 | $6,000 | $9,500 |
Which one of the following statements is true concerning the two projects given a positive discount rate?
| A. | Project Y has both a higher present value and a higher future value than project X. | |
| B. | Both projects have the same future value at the end of year 4. | |
| C. | Project X has a higher present value at time zero than project Y | |
| D. | Both projects have the same present value at time zero. |
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Banking And Finance
Authors: Brian Duignan
1st Edition
1615308946, 978-1615308941
