Investors discount the later years of a long-term project at a lower rate because they are generally less precise.

Name: Investors discount the later years of a long-term project at a lower rate because they are generally less precise.
Brand: Quizplus
Rating: 4.8 (60 reviews)

Question

Quizplus · Accepted Answer

While uncertainty increases as the time horizon increases of course, later years are discounted at a lower TVM factor primarily because of the time over which the discounting rate works.

Investors Discount the Later Years of a Long-Term Project at a Lower