Consider the timing of the profits of the following certain investment projects: - 2607

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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

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