Question
You are analyzing the value of an investment by calculating the present value of its expected cash flows. Which of the following should lead to
You are analyzing the value of an investment by calculating the present value of its expected cash flows. Which of the following should lead to increase in value of the investment?
A. the discount rate decreases
B. the cash flows are extended over a longer period of time, but the total amount of the cash flows remain the same
C. the discount rate increases
D. the riskiness of the project's cash flows increases
E. the total amount of cash flows remain the same, but more of the cash flows are received in the later years and less are received in the earlier years
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