Question: Link to formula sheets Question 10 1 pts Given the cash flows for the following 2 projects, which of the following is true assuming a
Link to formula sheets Question 10 1 pts Given the cash flows for the following 2 projects, which of the following is true assuming a discount rate of 8%? Project A: Investment: $1,000, Cash flows for 3 years: $250, $500, $700 Project B: Investment: $1,500, Cash flows for 3 years: $700, $650, $950 Project A has a higher NPV but a lower IRR The company can invest in any of these projects because they have the same investment amounts and yield the same total returns over the 3 years. Project A has a higher NPV and a higher IRR The company should not invest in either because both are negative NPV investments Project B has a higher NPV and a higher IRR Next Draudiu
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