Present values of alternative projects of different lengths of time cannot be compared directly because
A)the net benefits must be analyzed carefully in the more distant future
B)the discounted net benefits in more distant years will be smaller, all else equal
C)the net benefits can be compared directly.The premise of this question is incorrect.
D)If a project lasting for fewer years can be repeated, its present value will be underestimated using standard analysis

Question

Quizplus · Accepted Answer

If a project with a shorter duration can be repeated, its present value might be underestimated because standard analysis might not account for the benefits of repeating the project.

Present Values of Alternative Projects of Different Lengths of Time