Projects A and B have approximately the same NPV. Their initial outlays are similar in size. Project A has early positive cash flows, and little or nothing is expected to come in later on. Project B has much larger positive cash flows than A, but they're farther in the future. Can you make any general statement about which project might be better?

Projects A and B have approximately the same NPV. Their initial outlays are similar in size. Project A has early positive cash flows, and little or nothing is expected to come in later on. Project B has much larger positive cash flows than A, but they're farther in the future. Can you make any general statement about which project might be better?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 11P

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