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.