A company is evaluating a project that has a net present value of $0 when a discount rate of 10% is used. What will be the result of a discount rate of 8%?

Question

Quizplus · Accepted Answer

A lower discount rate means that the cash flows in the future are being discounted at a lower rate, resulting in a higher present value. Therefore, the project would have a positive net present value at a discount rate of 8%.

A Company Is Evaluating a Project That Has a Net