Consider a project that has a 10-year lifespan. The project requires a large initial investment. This investment is the only cost. The project gives a stream of benefits in Years 1 through 10. If the net benefit is positive for each year of the project, will using a higher discount rate result in a lower net present value (NPV) or a higher NPV, or will there be no change in NPV?

3. (10 pts.) Consider a project that has a 10-year lifespan. The project requires a large initial investment. This investment is the only cost. The project gives a stream of benefits in Years 1 through 10. If the net benefit is positive for each year of the project, will using a higher discount rate result in a lower net present value (NPV) or a higher NPV, or will there be no change in NPV? A. A lower NPV because a higher discount always results in a lower NPV B. A higher NPV because the discounting will apply only to the investment. C. A lower NPV because the discounting will apply only to the benefits. D. A higher NPV because a higher discount always results in a higher NPV. E. No change in NPV, as long as costs and benefits remain the same