If the discount rate on a proposed investment is raised, what happens to its present value? Why?

Question:

If the discount rate on a proposed investment is raised, what happens to its present value? Why?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: