If a company uses a 13.3% discount rate with the net present value method and...
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Accounting
If a company uses a 13.3% discount rate with the net present value method and then does the same analysis but with a 16.2% discount rate which of the following is likely to occur? The relative profitability of the two studies depends only on the timing of the cash flows not on the discount rate 2. The 16.2% rate will show the project is more profitable than the 13.3% rate 3. The 13.3% rate will show the project is more profitable than the 16.2% rate 4. Both rates will produce the same net present value
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