The use of a very high positive discount rate indicates that the project under
consideration is very important.

Question

The use of a very high positive discount rate indicates that the project under
 consideration is very important.

Quizplus · Accepted Answer

The use of a very high positive discount rate indicates that the project is not considered to be a good investment since the higher discount rate means that the future cash flows are being discounted at a higher rate, hence leading to a smaller present value of those cash flows.

The Use of a Very High Positive Discount Rate Indicates