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Tutorial   26426

You are considering two projects with the following cash flows: Which of the following statements are true concerning these two projects? I. Both pr...

Question:

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)      I, II, and IV only

b)      I and III only

c)       II only

d)      II and IV only

e)      II and III only

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