Assuming That Their NPVs Based on the Firm's Cost of Capital

question 42

True/False

Assuming that their NPVs based on the firm's cost of capital are equal, the NPV of a project whose cash flows accrue relatively rapidly will be more sensitive to changes in the discount rate than the NPV of a project whose cash flows come in later in its life.

---

Definitions:

Blue Wavy Underline

Indication used in word processors and text editing software to mark spelling suggestions or grammatical advice.

Contextual Spelling Error

Mistakes in writing that occur when words are spelled correctly but used in the wrong context.

Grammatically

Pertaining to the rules and structures used to compose correct and clear sentences in a language.

Main Dictionary

The primary vocabulary database used by a spell checker to determine the correct spelling of words.