Explain why the npv of a relatively long-term project

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Reference no: EM132031946

Explain why the NPV of a relatively long-term project, defined as one for which a high percentage of its cash flows are expected in the distant future, is more sensitive to changes in the required rate of return than is the NPV of a short-term project. In addition, please provide an example to better demonstrate your explanation.

Reference no: EM132031946

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