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Long term projects often offer high rate of return than short term projects. Just because it offers a high rate of return, it does not mean that it will have a higher NPV. The opposite is true for short-term bonds. If short-term bonds are offering a lower rate of return, it does not mean that it will have a lower NPV.

Keep the following things in mind:

Corporate Insights about Time-Varying Costs of Capital Obtained From the Yield Curve 19