The present value of an investment project ________ if the expected stream of profits _________.
A) decreases; decreases
B) decreases; increases
C) increases; increases
D) stays the same; increases

Question

Quizplus · Accepted Answer

The present value of an investment project increases if the expected stream of profits increases, as higher future profits lead to a higher valuation today.

The Present Value of an Investment Project ________ If the Expected