You Are Considering Two Projects with the Following Cash Flows

question 15

Multiple Choice

You are considering two projects with the following cash flows: $\begin{array}{lcc}&ProjectA&ProjectB\\\\\text { Year 1 } & £ 2,500 & £ 4,000 \\\\\text { Year 2 } & 3,000 & 3,500 \\\\\text { Year 3 } & 3,500 & 3,000 \\& & \\\text { Year 4 } & 4,000 & 2,500\end{array}$ Which of the following statements are true concerning these two projects?
i.Both projects have the same future value at the end of year 4,given a positive rate of return.II.Both projects have the same future value given a zero rate of return.III.Both projects have the same future value at any point in time,given a positive rate of return.IV.Project A has a higher future value than project B,given a positive rate of return.

• A)II only.
• B)IV only.
• C)I and III only.
• D)II and IV only.
• E)I,II,and III only.

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Definitions:

Stress

A psychological and physical reaction to demands, perceived as challenges or threats, which can affect health and wellbeing.

Cytokine Release

The process by which immune cells secrete cytokines, proteins that modulate the immune and inflammatory responses.

Arterial Plaque

Deposits of fatty substances, cholesterol, and other materials on the inner walls of arteries, which can lead to cardiovascular diseases.

Stress Hormones

Hormones like cortisol and adrenaline that are released in response to stress, affecting the body's metabolism, immune system, and other functions.