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.

---

Definitions:

External Jugular Vein

A vein located on each side of the neck that drains blood from the head, face, and neck into the subclavian vein.

Transverse Scapular Vein

A vein that drains blood from regions near the scapula and upper shoulder, contributing to venous circulation in that area.

Radial Vein

A vein that accompanies the radial artery and is responsible for draining blood from the lateral aspect of the forearm.

Postcava

Another term for the inferior vena cava, the large vein that carries deoxygenated blood from the lower half of the body to the right atrium of the heart.