Chartered Financial Analyst Level 1
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An analyst gathers the following information about two projects with the same discount rate:
Year Project 1 Cash Flows Project 2 Cash Flows 0 -$1,000 -$1,300 1 $400$5002 $400$5003 $400$500
If the NPV of Project 1 is $0, the NPV of Project 2 is:
An analyst gathers the following information about two projects with the same discount rate:
| Year | Project 1 Cash Flows | Project 2 Cash Flows |
|---|---|---|
| 0 | -$1,000 | -$1,300 |
| 1 | $400 | $500 |
| 2 | $400 | $500 |
| 3 | $400 | $500 |
If the NPV of Project 1 is $0, the NPV of Project 2 is:
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