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. Both projects have the same future value at any point in time,given a positive rate of return.
IV. Project A has a higher future value than project B,given a positive rate of return.
A) II only
B) IV only
C) I and III only
D) II and IV only
E) I, II, and III only

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. Both projects have the same future value at any point in time,given a positive rate of return.
IV. Project A has a higher future value than project B,given a positive rate of return.
A) II only 
B) IV only 
C) I and III only 
D) II and IV only 
E) I, II, and III only

Quizplus · Accepted Answer

The Answer of 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. Both projects have the same future value at any point in time,given a positive rate of return.
IV. Project A has a higher future value than project B,given a positive rate of return.
A) II only 
B) IV only 
C) I and III only 
D) II and IV only 
E) I, II, and III only

You Are Considering Two Projects with the Following Cash Flows