Investment projects A and B offer equal cash inflows over their lives,but the cash inflows for project A occur sooner than those for project B.B.The two projects are otherwise identical (the cost is the same,for example)Based on this information,the internal rate of return for A is lower than for

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Quizplus · Accepted Answer

The internal rate of return (IRR) is higher for project A because it receives cash inflows sooner, which increases the present value of those inflows compared to project B.

Investment Projects a and B Offer Equal Cash Inflows Over