Normal Projects S and L Have the Same NPV When

question 24

True/False

Normal Projects S and L have the same NPV when the discount rate is zero.However, Project S's cash flows come in faster than those of L.Therefore, we know that at any discount rate greater than zero, L will have the higher NPV.

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Definitions:

Individual Productivity

The amount of output or work a single person can produce in a given timeframe.

Group Polarization

A group's propensity to opt for decisions that are more pronounced in extremity than the early tendencies of its members.

Acquittal

A legal judgment that a person is not guilty of the crime with which they have been charged.

Favor

An act of kindness beyond what is due or usual.