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.Project A has a higher future value than project B,given a positive rate of return.
III.Both projects have the same future value at any point in time,given a positive rate of return.
IV.Both projects have the same future value given a zero rate of return.

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.Project A has a higher future value than project B,given a positive rate of return.
III.Both projects have the same future value at any point in time,given a positive rate of return.
IV.Both projects have the same future value given a zero rate of return.

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.Project A has a higher future value than project B,given a positive rate of return.
III.Both projects have the same future value at any point in time,given a positive rate of return.
IV.Both projects have the same future value given a zero rate of return.

You Are Considering Two Projects with the Following Cash Flows