Quiz Ch 11 – T/F Discount Rate Sensitivity: Swift vs. Delayed Cash Flow Accrual in Equal NPV Projects

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: When the NPVs are equivalent based on the firm's cost of capital, a project with swift cash flow accumulation will demonstrate greater susceptibility to discount rate adjustments compared to a project with later cash flows.

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