Question: Suppose that an analyst makes a mistake and calculates the NPV of an investment project by discounting the projects contribution to net income each year

Suppose that an analyst makes a mistake and calculates the NPV of an investment project by discounting the projects contribution to net income each year rather than by discounting its relevant cash flows. Would you expect the NPV based on net in-come to be higher or lower than the NPV calculated using the relevant cash flows?

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