单选题 An analyst does research about net present value and gathers the following information about two real estate projects, each with a cash outlay of $950000:
Project Cash flow 1 Cash flow 2 Cash flow 3
1 0 $880000 $880000
2 0 0 $1880000
If the cost of capital for both projects is 15%, the net present value (NPV) for Project 1 is:
A. less than the NPV of Project 2.
B. equal to the NPV of Project 2.
C. greater than the NPV of Project 2.

【正确答案】 C
【答案解析】[解析] Project 1:NPV1=-950000+8800001(1+15%)2+8800001(1+15%)3=294021＞
Project 2:NPV2=-950000+18800001(1+15%)3=286131。