Question: You are considering two projects. Project A has projected cash flows of $6,500, $4,500, and $2,500 for the next three years, respectively. Project B has

You are considering two projects. Project A has projected cash flows of $6,500, $4,500, and $2,500 for the next three years, respectively. Project B has projected cash flows of $2,500, $4,500, and $6,500 for the next three years, respectively. Assuming both projects have the same initial cost, you know that:

Project A is more valuable than Project B given a positive discount rate.

there are no conditions under which the projects can have equal values.

Project B has a higher net present value than Project A.

both projects offer the same rate of return

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