Question: Projects A and B have identical expected lives and initial cash outflows ( costs ) . The graph below shows the two NPV profiles for
Projects A and B have identical expected lives and initial cash outflows costs The graph below shows the two NPV profiles for Projects A and B Which of the following statements is CORRECT?
More of Project Bs cash flows occur in the later years.
More of Project As cash flows occur in the later years.
The NPV profile graph is inconsistent with the statement in the problem.
We must have information on the cost of capital in order to determine which project has larger early cash flows.
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