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Which of the following statements is CORRECT?
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Question 17
Projects S and L are both normal projects with an initial cost of
$10,000, followed by a series of positive cash inflows. Project S's
undiscounted net cash flows total $20,000, while L's total undiscounted
flows are $30,000. At a WACC of 10%, the two projects have identical
NPVs. Which project's NPV is more sensitive to changes in the WACC?
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Question 18
Which of the following statements is CORRECT? Assume that
the project being considered has normal cash flows