tively rapidly will be more sensitive to changes in the discount rate than the NPV of a project whose cash flows come in later in its life. Group of answer choices True
tively rapidly will be more sensitive to changes in the discount rate than the NPV of a project whose cash flows come in later in its life. Group of answer choices True
Chapter11: Cash Flow Estimation And Risk Analysis
Section11.1: Identifying Relevant Cash Flows
Problem 3ST
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6.
Assuming that their NPVs based on the firm's cost of capital are equal, the NPV of a project whose cash flows accrue relatively rapidly will be more sensitive to changes in the discount rate than the NPV of a project whose cash flows come in later in its life.
Group of answer choices
True
False
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