Question: Normal Projects S and L have same NPV at 0 discount rate. For the first 25 years both projects have exactly similar cash flows but

Normal Projects S and L have same NPV at 0 discount rate. For the first 25 years both projects have exactly similar cash flows but Project S has slightly higher cash flows than those of L from years 25 to 30 after which both projects cease to exist. Therefore, we know that at any discount rate greater than 0, L will have higher NPV.

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