Assuming that the total cash flows are equal, the NPV of a project whose cash flows accrue relatively rapidly is more sensitive to changes in the discount rate than is the NPV of a project whose cash flows come in more slowly.

Question

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The NPV of a project with cash flows accruing rapidly is less sensitive to changes in the discount rate because the cash flows are received earlier, reducing the impact of discounting.

Assuming That the Total Cash Flows Are Equal, the NPV