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Question 435 - CTFA discussion

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An analyst is developing net present value (NPV) profiles for two investment projects. The only difference between the two projects is that Project 1 is expected to receive larger cash flows early in the life of the project, while Project 2 is expected to receive larger cash flows late in the life of the project. The slope of the NPV profile for Project 1 when compared to the slope of the NPV profile for Project 2 is most likely:

A.
Equal
Answers
A.
Equal
B.
Flatter
Answers
B.
Flatter
C.
Steeper
Answers
C.
Steeper
D.
Unequal
Answers
D.
Unequal
Suggested answer: B
asked 16/09/2024
Bart Hakstege
38 questions
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