Homework Answers
Hi
If a project is riskier than your company WACC, then while calculating NPV you should take that risk factor in WACC and adjust WACC up.
As the years go by, discount rate affect the NPV more. Project will have higher NPV if cash flows are larger in initial years.
Hence option a is correct answer here. (These projects that have large cash inflows in earlier years)
Thanks
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