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Business, 05.05.2020 22:41 destinyycooper
Project S has a pattern of high cash flows in its early life, while Project L has a longer life, with large cash flows late in its life. Neither has negative cash flows after Year 0, and at the current cost of capital, the two projects have identical NPVs. Now suppose interest rates and money costs decline. Other things held constant, this change will cause L to become preferred to S. True False
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Project S has a pattern of high cash flows in its early life, while Project L has a longer life, wit...
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