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

Question

Quizplus · Accepted Answer

Investors typically discount the later years of a long-term project at a higher rate due to increased uncertainty and risk, not at a lower rate.

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