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: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
Get started today
Ultimate access to all questions.
Comments
Loading comments...
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:
