The ____ the MNC's cost of capital, the ____ will be a project's net present value for its proposed project with a given set of expected cash flows.

Question

Quizplus · Accepted Answer

A lower cost of capital means a lower discount rate, which will increase the present value of the expected cash flows of a project. Therefore, a lower cost of capital will lead to a higher net present value for a proposed project.

The ____ the MNC's Cost of Capital, the ____ Will

The the MNC's Cost of Capital, the Will