# Question: The investment in Project A is 1 million and

The investment in Project A is $ 1 million, and the investment in Project B is $ 2 million. Both projects have a unique internal rate of return of 20 percent. Is the following statement true or false?

For any discount rate from 0 percent to 20 percent, Project B has an NPV twice as great as that of Project A. Explain your answer.

For any discount rate from 0 percent to 20 percent, Project B has an NPV twice as great as that of Project A. Explain your answer.

## Answer to relevant Questions

Consider the following two mutually exclusive projects available to Global Investments, Inc.:The appropriate discount rate for the projects is 10 percent. Global Investments chose to undertake Project A. At a luncheon for ...An investment project costs $ 15,000 and has annual cash flows of $ 3,800 for six years. What is the discounted payback period if the discount rate is 0 percent? What if the discount rate is 10 percent? If it is 15 percent?The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects:a. If the required return is 10 percent and Robb Computer applies the profitability index decision rule, which ...You are evaluating a project that costs $ 75,000 today. The project has an inflow of $ 155,000 in one year and an outflow of $ 65,000 in two years. What are the IRRs for the project? What discount rate results in the maximum ...Which of the following should be treated as an incremental cash flow when computing the NPV of an investment? a. A reduction in the sales of a company’s other products caused by the investment. b. An expenditure on plant ...Post your question