Consider the timing of the profits of the following certain - 1617

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         Consider the timing of the profits of the following certain investment projects:

                               Profit

                          L             S

Year 1          $      0       $ 3000

Year 2          $ 3000      $       0

a.       Project S is preferred to Project L.

b.      Project L is preferred to Project S.

c.       Projects S and L are equally desirable.

d.      A goal of profit maximization would favor Project S only.

Solution Description

1.            Consider the timing of the profits of the following certain investment projects:

      &nb