Question: please help answer and solve Normal 1 No Spac... H Font Paragraph 1) Projects A and B have identical expected lives and identical initial cash
please help answer and solve


Normal 1 No Spac... H Font Paragraph 1) Projects A and B have identical expected lives and identical initial cash outflows (costs) However, most of one project's cash flows come in the early years, while most of the other project's cash flows occur in the later years. The two NPV profiles are given below: NPV E (3) Which of the following statements is CORRECT? a More of Project A's cash flows occur in the early years. b. More of Project B's cash flows occur in the early years c. We must have information on the cost of capital in order to determine which project has the lager early cash flows. d. The NPV profile graph is inconsistent with the statement made in the problem. croe e ie, the rate at which Projects A and B have the same NPV, is greater than either project's IRR 2) Projects S and L. are equally risky, mutually exclusive, and have normal cash flovs. Project S has an IRR of 15%, while Project L's IRR is 12% The two projects have the same NPV when the WACC is 7%, which of the following statements is CORRECT? a If the WACC is 13%, both projects will have positive NPVs. b. If the WACC is 13%, Project S will have the higher NPV C. If the WACC is 13%, Project S will have the lower NPV d. If the wACC is 10%, both projects will have a negative NPV e. Project S's NPV is more sensitive to changes in WACC than Project L's
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