As the discount rate applied to the cash flows from a proposed investment project decreases, the net present value of those cash flows rises.

Name: As the discount rate applied to the cash flows from a proposed investment project decreases, the net present value of those cash flows rises.
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Question

Quizplus · Accepted Answer

A lower discount rate reduces the present value of future cash flows less, resulting in a higher net present value (NPV).

As the Discount Rate Applied to the Cash Flows from a Proposed