Project H requires an initial investment of $100,000 and the produces annual cash flows of $50,000, $40,000, and $30,000. Project T requires an initial investment of $100,000 and the produces annual cash flows of $30,000, $40,000, and $50,000. If the required rate of return is greater than 0% and the projects are mutually exclusive
A) H will always be preferable to T.
B) T will always be preferable to H.
C) H and T are equally attractive.
D) The project rankings will change with different discount rates.

Question

Quizplus · Accepted Answer

The Answer of Project H requires an initial investment of $100,000 and the produces annual cash flows of $50,000, $40,000, and $30,000. Project T requires an initial investment of $100,000 and the produces annual cash flows of $30,000, $40,000, and $50,000. If the required rate of return is greater than 0% and the projects are mutually exclusive
A) H will always be preferable to T.
B) T will always be preferable to H.
C) H and T are equally attractive.
D) The project rankings will change with different discount rates.

Project H Requires an Initial Investment of $100,000 and the Produces