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Present Value

You have determined the profitability of a planned project by finding the present value of all the cash flow from that project. Which of the following would cause the project to look less appealing, that is, have a lower present value?

a. The discount rate decrease.
b. The Cash flows are extended over a longer period of time.
c. The discount rate increase.
d. B and C are both correct,
e. A and B are both correct.

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You have determined the profitability of a planned project by finding the present value of all the cash flow from that project. Which of the following would cause the project to look ...

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A multiple choice question on present value has been answered.

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