Same future value given a zero rate of return

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Reference no: EM131183535

You are considering two projects, A & B, with the following cash flows:

YEAR A B

1 $5,000 $4,000

2 $3,500 $4,500

3 $4,500 $3,500

4 $4,000 $5,000

Which of the following statements concerning these two projects are true?

A. Both projects have the same future value at the end of year 4, given a positive rate of return.

B. Both projects have the same future value given a zero rate of return.

C. Project A has a higher future value than project B, given a positive rate of return.

D. Both projects have the same future value at any point in time, given a positive rate of return.

Reference no: EM131183535

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