Consider the timing of the profits of the following certain investment projects: - 2745

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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

  1. Project S is preferred to Project L.
  2. Project L is preferred to Project S.
  3. Projects S and L are equally desirable.
  4. A goal of profit maximization would favor Project S only.
Solution Description

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