If Net Present Values Are Used to Evaluate Two Investments

question 140

True/False

If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.

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Definitions:

Breach Of Contract

A failure to perform any promise that forms all or part of a contract.

Condition Precedent

A condition that must be fulfilled before a contract becomes effective or before an obligation is required to be performed.

Injunction

A legal directive mandating that a person or organization either perform or halt a particular act.

Compensatory Damages

financial awards given to a plaintiff to reimburse actual losses, expenses, or suffering due to the defendant's wrongful act.