Question: How about NPV? Does NPV always choose the same project whether a firm has a high or low cost of capital? Making the Decision Sinning

How about NPV? Does NPV always choose the same project whether

How about NPV? Does NPV always choose the same project whether a firm has a high or low cost of capital?

Making the Decision Sinning estimates the cash flows of the two projects for the next 3 years as follows: 0 Expected Cash flows associated with the two projects Time Project 1 Project 2 (20 million) (30 Million) 12 million 5 million 2 8 Million 15 million 3 5 million 20 million 1 She was told by her manager that similar projects that the company has carried out before had a required rate of return of 12%, so she decided to use the same rate of return

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