Saturday 9 June 2012

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

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.
 

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