To ascertain the profitability of a proposed project, you have calculated the present

value of all its cash flows. Which factors would make the project appear more

attractive in terms of the present value of these cash flows?

The discount rate decreases.

The cash flows are extended over a longer period of time, but the total amount

of the cash flows remains the same.

The discount rate increases.

The cash flows are distributed over an identical time frame and accumulate to an

equivalent sum, yet they increase in size as the project approaches its

conclusion.

The cash flows are distributed over an extended period, and while the aggregate

amount remains unchanged, the individual cash flows increase as the project

nears completion.