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You are analyzing the value of an investment by calculating the present value of its expected cash flows. Which of the following would cause the
You are analyzing the value of an investment by calculating the present value of its expected cash flows. Which of the following would cause the investment to look better, i.e. have a higher PV?
A. The discount rate falls.
B. The riskiness of the project's cash flows increases.
C. The discount rate rises.
D. The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the same.
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