Q35.An analyst is developing net present value (NPV) profiles for two investment projects being considered by a company. The only difference between the two projects is that project 1 is expected to receive larger cash flows early in the project, while project 2 is expected to receive larger cash flows late in the life of the project. Compared to project 1, which of the following best describes the:

Slope of the NPV profiles for project 2?             Sensitivity of the NPV for project ? to

Changes in the company cost of capital?

A. flatter                                                less sensitive

B. flatter                                                more sensitive

C. steeper                                               less sensitive

D. steeper                                               more sensitive

答案和详解如下：

Q35.   D   Study Session 11-47.e

All else equal, a delay in the receipt of cash flows will make a project’s net present value more sensitive to changes in the discount rate; the increased sensitivity is illustrated by a steeper slope in the net present value profile.

d

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