You Are Considering Two Projects with the Following Cash Flows

question 95

Multiple Choice

You are considering two projects with the following cash flows:
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.Project X has a higher present value than Project Y,given a positive discount rate.
IV.Project Y has a higher present value than Project X,given a positive discount rate.

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

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Definitions:

Growth Strategy

Plans of action that businesses use to expand their operations and increase their market share and profitability.

Conducting Market Research

An approach to compile, examine, and deduce insights concerning a marketplace, inclusive of information on potential clients and competition.

Building Core Strengths

The process of developing and enhancing the key capabilities and resources of an organization that are essential for its long-term success.

Winning New Customers

Strategies and efforts aimed at attracting individuals to become new buyers or clients of a product or service.