High discount rates favour
A)neither long-term nor short-term investments.
B)both long-term and short-term investments.
C)long-term investments.
D)short-term investments.

Question

Quizplus · Accepted Answer

High discount rates favour short-term investments because they provide quicker returns that can be compounded at a higher rate. Long-term investments become less attractive as their future returns are discounted at a higher rate, reducing their present value.

High Discount Rates Favour