Project S has a pattern of high cash flows in its early life, while Project L has a longer life, with large cash flows late in its life. Neither has negative cash flows after Year 0, and at the current cost of capital, the two projects have identical NPVs. Now suppose interest rates and money costs decline. Other things held constant, this change will cause L to become preferred to S.

Answer the following statement true (T) or false (F)


True

Business

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Fill in the blank(s) with the appropriate word(s).

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Indicate whether the statement is true or false

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) Direct object B) Verb C) Subject D) None of the above

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