Consider cash flows for Projects X and Y such as: Project X Project Y - 2392

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Consider cash flows for Projects X and Y such as: Project X Project Y Year 1$3000 $0 Year 2$0$3000 A rational person would prefer receiving cash flows sooner because:

a. the money can be reinvested.

b. the money is nice to have around.

c. the investor may be tired of a particular investment.

d. the investor is indifferent to either proposal. 

Solution Description

Consider cash flows for Projects X and Y such as: Project X Project Y Year 1$3000