You are considering two projects with the following cash flows: Project X Project Y Year 1 $7,000 $5,000 Year 2 6,000 4,000 Year 3 4,000 3,000 Year 4 1,000 6,000 Which of the following statements are true concerning these two projects? I. Both projects have the same future value at the end of year 4, given a positive rate of return. II. Project X has a higher present value than Project Y, given a positive discount rate. III. Both projects have the same future value given a zero rate of return. IV. Project Y has a higher present value than Project X, given a positive discount rate. Multiple choice options: II only I and III only II and III only II and IV only I, III, and IV only
You are considering two projects with the following cash flows:
Project X Project Y
Year 1 $7,000 $5,000
Year 2 6,000 4,000
Year 3 4,000 3,000
Year 4 1,000 6,000
Which of the following statements are true concerning these two projects?
I. Both projects have the same
II. Project X has a higher
III. Both projects have the same future value given a zero rate of return.
IV. Project Y has a higher present value than Project X, given a positive discount rate.
Multiple choice options:
II only
I and III only
II and III only
II and IV only
I, III, and IV only
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