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Assumed is a discount rate of 5 % per year.Looking at the present values of these projects revenues in the first 3 years, what is true?

April 26, 2017Assumed discount rate PRESENT Projects revenues values

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Assumed is a discount rate of 5 % per year.Looking at the present values of these projects revenues in the first 3 years, what is true?

1 Answer

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Posted

• Both projects are equally attractive. • The first project is more attractive by app.7%. • The second project is more attractive by app.5%. • The first project is more attractive by app.3%.