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  • An analyst is developing net present value (NPV) profiles for...

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:

general knowledge math & puzzles
  1. equal.

  2. flatter

  3. steeper

  4. unequal


Show answer
Correct Option: B

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