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:

Planning Process

A series of steps that involve setting goals, establishing strategies, and outlining tasks and schedules to achieve the desired results.

Negative Message

Communication that conveys bad news, rejection, or a negative outcome to the recipient.

Channel And Medium

The means through which a message is transmitted from sender to receiver, such as spoken words, written text, or digital media.

Communicating Negative Information

The process of conveying unfavorable, adverse, or disappointing news or feedback in a manner that is clear, empathetic, and constructive.