Normal Projects Q and R Have the Same NPV When

question 30

True/False

Normal Projects Q and R have the same NPV when the discount rate is zero.However,Project Q's cash flows come in faster than those of R.Therefore,we know that at any discount rate greater than zero,R will have a higher NPV than Q.

---

Definitions:

Supply Chain Surplus

The difference between the value generated for the end customer and the total cost across the supply chain, indicating the chain’s efficiency.

Sourcing Processes

The activities involved in finding, evaluating, and engaging suppliers of goods and services.

Effective Sourcing

The process of identifying and procuring goods and services from external sources that meet the company's standards in quality, price, and delivery time.

Evaluation Period

A specific timeframe during which a process, performance, or project is reviewed and assessed for effectiveness or achievement of objectives.