Concerning the two projects given positive discount rate

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Reference no: EM131962394

1. You are considering two projects with the following cash flows:

Project Y Project X

Year 1 $9,500 $6,000

Year 2 $9,000 $6,900

Year 3 $6,900 $9,000

Year 4 $6,000 $9,500

Which one of the following statements is true concerning the two projects given a positive discount rate?

A. Both projects have the same present value at time zero.

B. Project X has a higher present value at time zero than project Y

C. Project Y has both a higher present value and a higher future value than project X.

D. Both projects have the same future value at the end of year 4.

2. What is the effective annual rate for a stated APR of 12.3 percent with weekly compounding?

A. 13.02 percent

B. 12.98 percent

C. 12.84 percent

D. 13.07 percent

Reference no: EM131962394

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