Strayer FIN534 Week 6 Discussion 1

FIN 534 Week 6 Discussion 1FIN 534.strayer.edu/webapps/blackboard/content/launchLink.jsp?course_id=_113270_1&content_id=_10942555_1&mode=view”>Week 6 Discussion 1“The Basics of Capital Budgeting: Evaluating Cash Flows” Please respond to the following:Elaborate on why the net present value (NPV) of a relatively long-term project is more sensitive to changes in the cost of capital than is the NPV of a short-term project. Provide two (2) examples of NPV that support your position.From the e-Activity, analyze the reasons why the short-term project that you have chosen might be ranked higher under the NPV criterion if the cost of capital is high, while the long-term project might be deemed better if the cost of capital is low. Determine whether or not changes in the cost of capital could ever cause a change in the internal rate of return (IRR) ranking of two (2) such projects. Provide an example of such a change—or the lack of one—to support your position