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  3. provide a one-line proof for each of the following

Provide a one-line proof for each of the following TRUE/FALSE? statements: Given a positive interest...

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Finance

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Provide a one-line proof for each of the following TRUE/FALSE? statements: Given a positive interest rate, the future value of Project B is higher than that of Project A.

If the payback period method rejects Project A, it would also reject Project B.

If the payback period method accepts Project B, it would also accept Project A.

Given a positive interest rate, the future value (at year 4) of Project B is higher than Project A but the present value (year 0) of Project A is higher than Project B.

7. (5 points) Consider two projects with the following cash flow. Assume both projects have the same initial cost in year 0: Year Project A Project B 1 800 960 2 820 900 3 900 820 4 960 800

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