Which one of the following statements is correct given the following two sets of project cash flows?
A) The cash flows for Project B are an annuity,but those of Project A are not.
B) Both sets of cash flows have equal present values as of time zero given a positive discount rate.
C) The present value at time zero of the final cash flow for Project A will be discounted using an exponent of three.
D) The present value of Project A cannot be computed because the second cash flow is equal to zero.
E) As long as the discount rate is positive,Project B will always be worth less today than will Project A.
Correct Answer:
Verified
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