The correct answer is: B. Unequal
The RADR real CE Approach is a method of calculating the NPV of a proposal that takes into account the time value of money. It does this by discounting the future cash flows of the proposal back to their present value. This means that the NPV of a proposal calculated using the RADR real CE Approach will always be less than the NPV of the same proposal calculated using a traditional NPV calculation.
The reason for this is that the RADR real CE Approach takes into account the fact that money is worth more today than it will be in the future. This is because of the opportunity cost of money. The opportunity cost of money is the return that could be earned on an investment if the money were not used to finance the proposal.
The RADR real CE Approach also takes into account the risk of the proposal. The risk of a proposal is the probability that the proposal will not achieve its expected results. The higher the risk of a proposal, the lower the NPV of the proposal will be.
Therefore, the NPV of a proposal calculated using the RADR real CE Approach will always be less than the NPV of the same proposal calculated using a traditional NPV calculation. This is because the RADR real CE Approach takes into account the time value of money and the risk of the proposal.
Here is a brief explanation of each option:
- Option A: The NPV of a proposal, as calculated by RADR real CE Approach will be the same. This is not correct because the RADR real CE Approach takes into account the time value of money and the risk of the proposal, which means that the NPV of a proposal calculated using the RADR real CE Approach will always be less than the NPV of the same proposal calculated using a traditional NPV calculation.
- Option B: The NPV of a proposal, as calculated by RADR real CE Approach will be unequal. This is correct because the RADR real CE Approach takes into account the time value of money and the risk of the proposal, which means that the NPV of a proposal calculated using the RADR real CE Approach will always be less than the NPV of the same proposal calculated using a traditional NPV calculation.
- Option C: Both A and B. This is not correct because Option A is not correct.
- Option D: None of A and B. This is not correct because Option B is correct.