Two Projects That Have the Same Cost and the Same

question 32

True/False

Two projects that have the same cost and the same expected cash flows will have the same net present value.

---

Definitions:

Increase Quantity

A strategy or action aimed at raising the amount of goods or services produced or available.

Maximum Willingness to Pay

The highest amount a consumer is willing to spend on a good or service, reflecting the perceived value.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

Rational

Related to decision-making, denotes behavior in accordance with logic or reason, where choices are made to maximize self-interest or outcome.